MEPs have backed plans to make it easier for companies to adjust their size and ownership structure.
The move – part of Brussels’ growth and jobs and better regulation objectives – would allow businesses to simplify their formation, maintenance and alteration of capital.
The European commission has welcomed parliament's agreement at first reading.
“Today's vote is an important step towards our aim of maximising the efficiency and competitiveness of European business,” internal market and services commissioner Charlie McCreevy said on Tuesday.
“The directive will simplify EU rules to allow companies to adjust their capital size and ownership structure more easily, enabling them to react more promptly and efficiently to market developments while maintaining the protection offered to shareholders and creditors.”
The so-called second company law directive established a system giving minimum guarantees for shareholders and creditors where public limited companies are set up.
But certain aspects of this system were seen as too inflexible and costly and modifications were recommended by the commission.
The proposed directive will implement some of these recommendations, including the acquisition of shares through contributions in kind and the acquisition by a company of its own shares.
Current rules on financial assistance that a company can give for the acquisition of its shares by a third party will also be relaxed.
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