INFORMATION TECHNOLOGY
EU Council: European Directive on enhanced digitisation in company law adopted.
The EU Council has adopted a new directive adapting company law to the needs of the digital age. This measure, which expands and updates the use of digital tools and processes, is a key step towards modernising business management within the EU. By exploiting the great potential of digital tools, the aim is, in fact, to simplify the lives of entrepreneurs, reduce administrative burdens and make cross-border activities faster, easier and more transparent.
Specifically, the directive envisages the Business Register Interconnection System (BRIS), with which it will be easier to share crucial information, such as data on company shareholders. In addition, a multilingual digital system (Digital EU Power of Attorney) is introduced to simplify cross-border legal formalities by eliminating the need for apostilles and additional translations for business documents.
The new rules also promote the use of the ‘one-off principle’, which allows companies to establish subsidiaries and branches in other Member States without having to repeat the same legal procedures in each country. In this context, a multilingual European company certificate is proposed, which could be free of charge for certain categories of companies, such as limited liability companies and partnerships. Finally, it is envisaged that cooperatives could be included in the future scope, further widening the scope of the reform.
With the formal approval by the Council, the directive has been adopted. It now awaits the signature of the President of the Parliament and the President of the Council, after which the act will be published in the Official Journal of the European Union.
Specifically, the directive envisages the Business Register Interconnection System (BRIS), with which it will be easier to share crucial information, such as data on company shareholders. In addition, a multilingual digital system (Digital EU Power of Attorney) is introduced to simplify cross-border legal formalities by eliminating the need for apostilles and additional translations for business documents.
The new rules also promote the use of the ‘one-off principle’, which allows companies to establish subsidiaries and branches in other Member States without having to repeat the same legal procedures in each country. In this context, a multilingual European company certificate is proposed, which could be free of charge for certain categories of companies, such as limited liability companies and partnerships. Finally, it is envisaged that cooperatives could be included in the future scope, further widening the scope of the reform.
With the formal approval by the Council, the directive has been adopted. It now awaits the signature of the President of the Parliament and the President of the Council, after which the act will be published in the Official Journal of the European Union.
