Financial Sustainability of the Company and the Principle of Share Capital Maintenance

Yuri Biondi

doi:10.1515/ael-2024-0007

Article

Financial Sustainability of the Company and the Principle of Share Capital Maintenance

Yuri Biondi

Published/Copyright: February 12, 2025

Published by

Become an author with De Gruyter Brill

Submit Manuscript Author Information Explore this Subject

From the journal Accounting, Economics, and Law: A Convivium Volume 15 Issue s1

Abstract

This Report is an output of the European Law Institute – ELI Project on “ELI Guidance on company capital and financial accounting for corporate sustainability” (2019–2023). After brief introduction to the Project and research methodology, it provides a comprehensive review of legal-economic academic literature on corporate sustainability and capital maintenance. Following the literature review, the Report provides a legal analysis of EU primary and secondary sources of law tackling sustainability issues, including some sustainability standards, alongside relevant cases of the Court of Justice of the European Union (CJEU). This legal analysis does also include a comparative overview of national capital maintenance regimes in German, British and French company law and regulation. Although academic literature and evidence from corporate practice suggest that the stakeholder model of corporate governance has been challenged by and somewhat relegated in favour of the shareholder primacy orientation, findings presented herein show that the idea of sustainable company is deeply entrenched in EU primary and secondary legislation. The stakeholder model prevails in national company laws. The idea of corporate sustainability and longer-termism is underpinned by the mandatory rules on share capital maintenance, as stipulated in the Directive on certain aspects of company law. In fact, EU case law appears to adhere to the minimum capital maintenance regime adopted at the EU level, submitting stricter Member States regimes to the proportionality test. The concept and need of capital maintenance is further challenged by a fierce academic debate, where some scholars have suggested alternative or complementary forms of creditor protection within and outside the scope of company law. The EU fosters long-term corporate financial robustness through introducing and maintaining stakeholder model of EU company law, as explicitly provided under constitutional provisions of the TFEU; mandatory share capital rule, accompanied by remedial schemes and possibility of introducing alternative or complementary regimes (including civil law arrangements such as insurance schemes); non-financial disclosures of corporate social responsibility (CSR) and environmental, social and governance (ESG) matters, with reference to international standards (most notably UN and OECD), supported by pensalisation schemes; forward-looking remuneration policy, accompanied by the remuneration ‘capping’ scheme, deferral periods and shareholders’ binding say on remuneration proposals; and prudential requirements such as special capital and solvency requirements for financial and insurance institutions. Concerning financial accounting and reporting, corporate sustainability is not covered in EU accounting law and regulation, where fair value accounting, including accounting for IFRS 9 on financial instruments in conjunction with IFRS 13 on fair value measurements, remains a significant problem for longer-term financial sustainability, requiring alternative or complementary solutions.

Keywords: prudential regulation; company capital management; financial accounting and reporting; responsible business conduct; corporate sustainability

JEL Classification: G30; M40; M20; M14; L20

Corresponding author: Yuri Biondi, CNRS, University Paris Dauphine PSL (IRISSO), Place Marechal Lattre Tassigny, Paris, 75016, France, E-mail: yuri.biondi@gmail.com

Acknowledgement

The report was jointly prepared by the ELI Project’s research team under the supervision by Dr Yuri Biondi (CNRS, France) and the research assistance by Dr Kristijan Poljanec (Postdoctoral Research Fellow at Law Department, Faculty of Economics and Business, UNIZg, Croatia). This publication is supported by the European Law Institute (ELI)’s Special Interest Group (SIG) on Business and Financial Law (BFL). The statements and recommendations contained in this publication have not been approved or endorsed by any statutory body of the ELI and thus should not be taken to represent an official statement or position of ELI. Legal review established by March, 6th, 2020.

References

Books and Special Issues

Biondi, Y., and S. Zambon. 2012. Accounting and Business Economics: Insights from National Traditions. London: Routledge.Search in Google Scholar

Biondi, Y., Th. Kirat, and A. Canziani, eds. 2007. The Firm as an Entity: Implications for Economics, Accounting and the Law. London: Routledge.Search in Google Scholar

Beate, Sjåfjell, Andrew Johnston, Linn Anker-Sørensen, and David Millon. 2015. “Shareholder Primacy: The Main Barrier to Sustainable Companies.” In Company Law and Sustainability: Legal Barriers and Opportunities, edited by Sjåfjell Beate, and B. J. Richardson. Cambridge University Press. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2664544 (accessed 29 February, 2020).Search in Google Scholar

CONVIVIUM. 2012. “Volume 2: Issue 2: Ownership and the Business Firm: Implications for Corporate Governance and Social Responsibility. https://www.degruyter.com/view/journals/ael/2/2/ael.2.issue-2.xml.Search in Google Scholar

CONVIVIUM. 2015. “The Comply or Explain Principle: Fair or Foul?” Accounting Economics and Law: A Convivium 5, no. 3. https://www.degruyter.com/journal/key/ael/5/3/html.Search in Google Scholar

CONVIVIUM. 2017. “Volume 7: Issue 2: Which Accounting Regulation for Europeʼs Economy and Society.” In Proceedings of the Workshop Organised by the Laboratory of Excellence on Financial Regulation (Labex ReFi) under the Auspices of the European Parliament, European Parliament, Strasbourg, 20 May 2015. https://www.degruyter.com/view/journals/ael/7/2/ael.7.issue-2.xml.Search in Google Scholar

CONVIVIUM. 2020. “Rethinking Non-financial Reporting: A Blueprint for Structural Regulatory Changes.” Accounting Economics and Law: A Convivium 10, no. 2. https://www.degruyter.com/journal/key/ael/10/2/html.Search in Google Scholar

Crane, A., D. Matten, and L. J. Spenc. 2013. Corporate Social Responsibility: In a Global Context. In Corporate Social Responsibility: Readings and Cases in a Global Context, 2nd ed., edited by A. Crane, D. Matten, and L. J. Spenc. Abingdon: Routledge. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2322817 (accessed 29 February, 2020).Search in Google Scholar

Hana, H., K. Dumančić, and K. Poljanec. 2014. European Market Law: Handbook, Vol. 1, 214–25. Voronezh-Zagreb: Voronezh State University (Faculty of Law) and University of Zagreb (Faculty of Economics and Business). http://www.efzg.unizg.hr/UserDocsImages/PRA/2017%20-%20novi%20web/Publikacije/European%20Market%20Law%20online.pdf (accessed 29 February, 2020).Search in Google Scholar

Rodés, Saldaña Laura. 2019. “Suitability of EU Legal Capital Rules as a Mechanism of Creditor Protection: A Comparative Study and Functional Study.” Doctoral Thesis, Leicester Law School, University of Leicester. https://figshare.com/articles/Suitability_of_EU_legal_capital_rules_as_a_mechanism_of_creditor_protection_-_A_comparative_and_functional_study/10231844 (accessed 29 February, 2020).Search in Google Scholar

Articles

Armour, John. 2006. “Legal Capital: An Outdated Concept.” European Business Organization Law Review 7: 3.Search in Google Scholar

Andersson, T., C. Haslam, E. Lee, and N. Tsitsianis. 2008. “Financialization Directing Strategy.” Accounting Forum 32 (4): 261–75. https://doi.org/10.1016/j.accfor.2008.08.001.Search in Google Scholar

Autenne, A., Y. Biondi, G. Cavalier, A. Cotiga-Raccah, P. Doralt, C. Haslam, H. Horak, et al.. 2018. “The Current Challenges for EU Company and Financial Law and Regulation.” Accounting, Economics, and Law: A Convivium 8 (3): 20170064. https://doi.org/10.1515/ael-2017-0064.Search in Google Scholar

Biondi, Yuri. 2005. “The Firm as an Entity: Management, Organization, Accounting.” Universita degli Studi di Brescia Working. Paper No. 46. https://doi.org/10.2139/ssrn.774764.Search in Google Scholar

Biondi, Yuri. 2011. “The Pure Logic of Accounting: A Critique of the Fair Value Revolution.” Accounting, Economics, and Law: A Convivium 1 (1). https://doi.org/10.2202/2152-2820.1018.Search in Google Scholar

Biondi, Yuri. 2012. “What Do Shareholders Do? Accounting, Ownership and the Theory of the Firm: Implications for Corporate Governance and Reporting.” Accounting, Economics, and Law: A Convivium 2 (2). https://doi.org/10.1515/2152-2820.1068.Search in Google Scholar

Biondi, Yuri. 2013. “The Governance and Disclosure of the Firm as an Enterprise Entity.” Seattle University Law Review 36 (2): 391–416.Search in Google Scholar

Biondi, Yuri. 2014. “Better Accounting for Corporate Shareholding and Environmental Protection.” European Company Law 11 (2), University of Oslo Faculty of Law Research Paper No. 2014-28. https://doi.org/10.2139/ssrn.2471519.Search in Google Scholar

Biondi, Yuri. 2015. “Accounting and the Formation of Share Market Prices over Time: A Mathematical Institutional Economic Analysis through Simulation and Experiment.” Applied Economics 47 (34–35): 3651–72. https://doi.org/10.1080/00036846.2015.1021461 Search in Google Scholar

Biondi, Yuri. 2017. “Accounting for Europe’s Economy and Society: Considerations for Financial Stability, Economic Development and the Public Good.” Accounting, Economics, and Law: A Convivium 7 (2): 65–77. https://doi.org/10.1515/ael-2017-0018.Search in Google Scholar

Biondi, Yuri. 2020. “Ownership (Lost) and Corporate Control: An Enterprise Entity Perspective.” Accounting, Economics, and Law: A Convivium 10 (3). https://doi.org/10.1515/ael-2019-0025.Search in Google Scholar

Biondi, Yuri. 2025. “Financial Sustainability of the Company and the Principle of Share Capital Maintenance.” Accounting, Economics, and Law: A Convivium 15 (s1): s107–202 https://doi.org/10.1515/ael-2054-0007.Search in Google Scholar

Biondi, Yuri, and Colin Haslam. 2020. “Company Capital Management: Safeguarding Financial Resilience for Sustainability.” European Company Law 17 (5): 165–75.Search in Google Scholar

Biondi, Yuri and Pierpaolo Giannoccolo. 2015. “Share Price Formation, Market Exuberance and Financial Stability under Alternative Accounting Regimes.” Journal of Economic Interaction and Coordination 10(2): 333–62. https://doi.org/10.2139/ssrn.2277218.Search in Google Scholar

Biondi, Yuri, and Imke J. Graeff. 2024. “Between Prudential Regulation and Shareholder Value: An Empirical Perspective on Bank Shareholder Equity (2001-2017).” Accounting, Economics, and Law: A Convivium 14 (3): 395–429. https://doi.org/10.1515/ael-2019-0083.Search in Google Scholar

Bignon, Vincent, Yuri Biondi, and Xavier Ragot. 2009. “An Economic Analysis of Fair Value: Accounting as a Vector of Crisis.” Cournot Centre for Economic Studies, Prisme 3. https://ssrn.com/abstract=1474228.Search in Google Scholar

Eroğlu, Muzaffer. 2014. How to Achieve Sustainable Companies: Soft Law (Corporate Social Responsibility and Sustainable Investment) or Hard law (Company Law). Kadir Has Üniversitesi Hukuk Fakültesi Dergisi Sayı: 89 Available at https://jurix.com.tr/article/4260 (accessed 29 February, 2020).Search in Google Scholar

Enriques, Luca, and Jonathan R. Macey. 2001. “Creditors versus Capital Formation: The Case against the European Legal Capital Rules.” Cornell Law Review 86: 1165.Search in Google Scholar

Evan, W. M., and R. E. Freeman. 1993. “A Stakeholder Theory of the Modern Corporation: Kantian Capitalism.” In Ethical Theory and Business, edited by T. Beauchamp, and N. Bowie. Englewood: Prentice Hall.Search in Google Scholar

Ferran, Eilís. 2012. “Crisis-Driven EU Financial Regulatory Reform.” In The Regulatory Aftermath of the Global Financial Crisis, edited by Eilís Ferran, Niamh Moloney, Jennifer G. Hill, and John C. CoffeeJr.. Cambridge University Press. University of Cambridge Faculty of Law Research Paper No. 6/2012. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2028003 (accessed 29 February, 2020).Search in Google Scholar

Ferran, Eilís. Forthcoming. Revisiting Legal Capital, European Business Organization Law Review, 8. University of Cambridge Faculty of Law Research Paper 20/2019. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3449052 (accessed 29 February, 2020).Search in Google Scholar

Gelter, Martin. 2018. “EU Company Law Harmonization between Convergence and Varities of Capitalism.” In Research Handbook on the History of Corporation and Company Law, edited by Harwell Wells. Fordham Law Legal Studies Research Paper No. 2977500 and European Corporate Governance Institute (ECGI) - Law Working Paper No. 355/2017. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2977500## (accessed 29 February, 2020).Search in Google Scholar

Hansmann, Henry, and Kraakman Reinier. 2022. The End of History for Corporate Law. Yale Law School Law and Economics Working Paper No. 235; New York University Law and Economics Working Paper No. 13, Harvard Law School Discussion Paper No. 280, Yale Center for Finance Working Paper No. 00-09. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=204528 (accessed 29 February, 2020).Search in Google Scholar

Hopt, K. J. 2018. Comparative Company Law. European Corporate Governance Institute Law Working Paper No 460/2019. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3421389 (accessed 29 February, 2020).Search in Google Scholar

Haslam, C., N. Tsitsianis, R. Hoinaru, T. Andersson, and G. Katechos. 2015. “Stress-testing International Financial Reporting Standards (IFRS): Accounting for Stability and the Public Good in a Financialized World.” Accounting, Economics and Law: A Convivium 6 (2): 93–118. https://doi.org/10.1515/ael-2015-0006.Search in Google Scholar

Jensen, M. C. 1986. “Agency Costs of Free Cash Flow Corporate Finance and Takeovers.” The American Economic Review 76 (2): 323–9.Search in Google Scholar

Johnson, L. P. Q. 2017. Corporate Law and the History of Corporate Social Respnsibility. Washington & Lee Public Legal Studies Research Paper Series, No. 2017-10. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1973726 (accessed 29 February, 2020).Search in Google Scholar

Klein, Israel. 2017. “A Change in Accounting, A Change in Law.” Delaware Journal of Corporate Law 42 (1): 51–76.Search in Google Scholar

Licht, Amir N. 2014. Culture and Law in Corporate Governance. Law Working Paper No 247/2014, European Corporate Governance Institute 2014. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2405538 (accessed 29 February, 2020).Search in Google Scholar

Maurović, Ljiljana. Directive 2006/68/EC Amending the Second Company Law Directive EU as Regards the Maintenance of Public Limited Liability Companies’ Capital and the Acquisition of Own Shares, 12. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2237882 (accessed 29 February, 2020).Search in Google Scholar

Moore, Michael. CSR and Company Financial Performance. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3377842 (accessed 29 February, 2020).Search in Google Scholar

Pasqualini, F. 2015. “L’image Fidèle: Mythe Ou Réalité?” Comptabilité et fiscalité pratiques (Wolters Kluwer) 2015 (8): 16–21.Search in Google Scholar

Richardson, B. J. 2011. “Sustainability and Company Law: An Improbable Union.” European Company Law 8 (2–3): 54–55, University of Oslo Faculty of Law Legal Studies Research Paper Series No. 2011-03.Search in Google Scholar

Rickford, Jonathan, ed. 2004. Reforming Capital, Report of the Interdisciplinary Group on Capital Maintenance, 922. British Institute of International and Comparative Law. https://www.biicl.org/files/916_capital_maintenance_report_-_final.pdf (accessed 29 February, 2020).Search in Google Scholar

Strampelli, Giovanni. 2011. “The IAS/IFRS after the Crisis: Limiting the Impact of Fair Value Accounting on Companiesʼ Capital.” European Company and Financial Law Review 8 (1): 2–3.Search in Google Scholar

Weller, M. P., Hűbner Leonhard, and Kaller Luca. 2018. “Private International Law for Corporate Social Responsibility.” In German National Reports on the 20th International Congress of Comparative Law, 239–268, edited by Martin Schmidt-Kessel. Mohr Siebeck; Max Planck Intitute for Comparative and International Law Research Paper Series No 18/14, p. 247. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3275464 (accessed 29 February, 2020).Search in Google Scholar

Primary Sources

Institutional Documents

European Banking Authorityʼs Report on Undue Short-Term Pressure from the Financial Sector on Corporations, 18 December 2019, p. 4. Available at https://eba.europa.eu/eba-calls-banks-consider-long-term-horizons-their-strategies-and-business-activities (29 February 2020).Search in Google Scholar

KPMG Feasibility Study on an Alternative to the Capital Maintenance Regime Established by the Second Company Law Directive 77/91/EEC of 13 December 1976 and an Examination of the Impact on Profit Distribution of the new EU-accounting Regime: Main Report, p. 2. Available at https://lse.rl.talis.com/items/0FE92D26-066F-2FD8-C723-2B5F1B5F28D1.html (29 February 2020).Search in Google Scholar

OECD Guidelines for Multi-national Enterprises, 2011 Edition, OECD, available at http://www.oecd.org/daf/inv/mne/48004323.pdf (23 February 2020).Search in Google Scholar

‘The Modern Corporation. Statement on Company Law’. Available at http://www.purposeofcorporation.org/modern-corporation-statements.pdf (29 February 2020).Search in Google Scholar

EU Legal Acts

Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (Text with EEA relevance) OJ L 320, 29.11.2008, p. 1–48. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02008R1126-20200101 (29 February 2020).Search in Google Scholar

Communication from the Commission to the the Council and Parliament Modernising Company Law and Enhancing Corporate Governance in the European Union – A Plan to Move Forward, Brussels, 21.5.2003 COM (2003) 284 final, available at https://www.europarl.europa.eu/RegData/docs_autres_institutions/commission_europeenne/com/2003/0284/COM_COM%282003%290284_EN.pdf (29 February 2020).Search in Google Scholar

Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions A renewed EU strategy 2011-14 for Corporate Social Responsibility, Brussels, 25.10.2011 COM(2011) 681 final, p. 6. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52011DC0681 (29 February 2020).Search in Google Scholar

Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions: Next Steps for a sustainable Euroepan future, COM(2016) 739 final, European action for sustainability SWD (2016) 390 final. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2016%3A739%3AFIN (29 February 2020).Search in Google Scholar

Communication from the Commission Guidelines on non-financial reporting (methodology for reporting non-financial information) (2017/C 215/01). Available at https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52017XC0705(01)&from=EN (23 February 2020).Search in Google Scholar

Communication from the Commission to the European Parliament, the Council, The European Economic and Social Committee and the Committee of the Regions Action Plan: Financing Sustainable Growth, COM/2018/097 final. Available at https://ec.europa.eu/info/publications/180308-action-plan-sustainable-growth_en (24 February 2020).Search in Google Scholar

Communication Staff Working Document Corporate Social Responsibility, Responsible Business Conduct, and Business & Human Rights: Overview of Progress, Brussels, 20.3.2019 SWD(2019) 143 final, p. 28. Available at https://ec.europa.eu/transparency/regdoc/rep/10102/2019/EN/SWD-2019-143-F1-EN-MAIN-PART-1.PDF (29 February 2020).Search in Google Scholar

Communication from the Commission – Guidelines on non-financial reporting: Supplement on reporting climate-related information, C/2019/4490, OJ C 209, 20.6.2019, p. 1–30 Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52019XC0620(01) (23 February 2020).Search in Google Scholar

Communication from the Commission The European Green Deal, COM/2019/640 final, available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52019DC0640 (23 February 2020).Search in Google Scholar

Consolidated versions of the Treaty on European Union and the Treaty on the Functioning of the European Union – Consolidated version of the Treaty on European Union – Protocols – Declarations annexed to the Final Act of the Intergovernmental Conference which adopted the Treaty of Lisbon, signed on 13 December 2007 – Tables of equivalences, Official Journal C 326, 26 October 2012, pp. 1 – 390. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex%3A12012E%2FTXT (29 February 2020).Search in Google Scholar

Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (Text with EEA relevance) OJ L 335, 17.12.2009, p. 1–155. Available at https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex%3A32009L0138 (29 February 2020).Search in Google Scholar

Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC Text with EEA relevance OJ L 182, 29.6.2013, p. 19–76. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013L0034-20141211 (29 February 2020).Search in Google Scholar

Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC Text with EEA relevance, OJ L 176, 27.6.2013, p. 338–436. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013L0036-20180709 (29 February 2020).Search in Google Scholar

Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial and diversity information by certain large undertakings and groups Text with EEA relevance OJ L 330, 15.11.2014, p. 1–9. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0095 (29 February 2020).Search in Google Scholar

Directive (EU) 2017/828 of the European Parliament and of the Council of 17 May 2017 amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement (Text with EEA relevance) OJ L 132, 20.5.2017, p. 1–25. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32017L0828 (29 February 2020).Search in Google Scholar

Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law OJ L 169, 30.6.2017, p. 46–127 (Text with EEA relevance). Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32017L1132 (29 February 2020).Search in Google Scholar

Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32019L1023.Search in Google Scholar

Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards OJ L 243, 11.9.2002, p. 1–4. Available at https://eur-lex.europa.eu/legal-content/en/ALL/?uri=CELEX%3A32002R1606 (29 February 2020).Search in Google Scholar

Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Text with EEA relevance OJ L 176, 27.6.2013, p. 1–337. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013R0575-20190627 (29 February 2020).Search in Google Scholar

Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements, and Regulation (EU) No 648/2012 (Text with EEA relevance) PE/15/2019/REV/1, OJ L 150, 7.6.2019, p. 1–225. Available at https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R0876&from=BG (29 February 2020).Search in Google Scholar

Second Council Directive 77/91/EEC of 13 December 1976 on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty [currently Article 54 of the Consolidated Version of The Treaty On The Functioning Of The European Union (OJ C 326, 26.10.2012)], in respect of the formation of public limited liability companies and the maintenance and alteration of their capital, with a view to making such safeguards equivalent [1977], OJ L 26, 31.1.1977, p. 1–13. Available at https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A31977L0091 (29 February 2020).Search in Google Scholar

CJEU Case Law

Judgment of the Court (Second Chamber), Alfred Hirmann v Immofinanz AG, C-174/12, EU:C:2013:856. Available at http://curia.europa.eu/juris/liste.jsf?language=en&num=C-174/12 (29 February 2020).Search in Google Scholar

Judgment of the Court of 9 March 1999, Centros Ltd v Erhvervs- og Selskabsstyrelsen, C-212/97, EU:C:1999:126, available at https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A61997CJ0212 (29 February 2020).Search in Google Scholar

Judgment of the Court of 5 November 2002, Überseering BV v Nordic Construction Company Baumanagement GmbH (NCC), C-208/00, EU:C:2002:632. Available at http://curia.europa.eu/juris/liste.jsf?language=en&num=C-208/00 (29 February 2020).Search in Google Scholar

Judgment of the Court of 30 September 2003, Kamer van Koophandel en Fabrieken voor Amsterdam v Inspire Art Ltd, C-167/01, EU:C:2003:512. Available at http://curia.europa.eu/juris/showPdf.jsf?docid=71281&doclang=EN (29 February 2020).Search in Google Scholar

Judgment of the Court of case of 12 December 2008, Case T-417/05, Endesa v. Commission.Search in Google Scholar

Judgment of the Court of 13 September 2010, Joined Cases T-415/05, T-416/05 and T 423/05, République hellénique (T-415/05), Olympiakes Aerogrammes AE (T-416/05) et Olympiaki Aeroporia Ypiresies AE (T-423/05) v. Commission européenne.Search in Google Scholar

Judgment of the Court of 15 February 2012, Case C-118/11, Eon Aset Menidjmunt OOD v. Direktor na Direktsia “Obzhalvane I upravlenie na izpalnenieto” – Varna pri Tsentralno upravlenie na Natsionalnata agentsia za prihodite.Search in Google Scholar

Judgment of the Court of 3 October 2013, Case C-322/12, État belge v. GIMLE SA.Search in Google Scholar

Judgment of the Court of 6 February 2014, Case C-528/12, Mömax Logistik GmbH v. Bundesamt für Justiz.Search in Google Scholar

Judgment of the Court of 13 February 2014, Case C-18/13, Maks Pen EOOD v. Direktor na Direktsia «Obzhalvane i danachno-osiguritelna praktika» Sofia.Search in Google Scholar

Judgment of the Court of 6 March 2014, C-510/12, Bloomsbury NV v. Belgische Staat.Search in Google Scholar

Judgment of the Court (Sixth Chamber) of 10 December 2015, Case C-594/14, Simona Kornhaas v Thomas Dithmar als Insolvenzverwalter über das Vermögen der Kornhaas Montage und Dienstleistung Ltd.Search in Google Scholar

Judgment of the Court of 28 June 2019, Case T-741/16, Changmao Biochemical Engineering Co. Ltd v European Commission.Search in Google Scholar

Web Pages

https://ec.europa.eu/info/strategy/priorities-2019-2024/economy-works-people/deeper-and-fairer-economic-and-monetary-union_en Search in Google Scholar

https://ec.europa.eu/commission/presscorner/detail/en/MEMO_08_434 (29 February 2020)Search in Google Scholar

https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12129-Revision-of-Non-Financial-Reporting-Directive (23 February 2020)Search in Google Scholar

https://sustainabledevelopment.un.org/?menu=1300 (23 February 2020)Search in Google Scholar

https://www.iso.org/iso-26000-social-responsibility.html (23 February 2020)Search in Google Scholar

https://www.nytimes.com/2020/01/24/business/dealbook/goldman-diversity-boardroom.html (24 January 2020)Search in Google Scholar

https://www.ohchr.org/Documents/Issues/Business/Intro_Guiding_PrinciplesBusinessHR.pdf (23 February 2020)Search in Google Scholar

https://www.unglobalcompact.org/what-is-gc (23 February 2020)Search in Google Scholar

https://corpfiles.delaware.gov/pdfs/2012CorpAR.pdf (5 March 2020)Search in Google Scholar

https://www.europeanlawinstitute.eu/projects-publications/current-projects-feasibility-studies-and-other-activities/current-projects/business-and-human-rights/#:∼:text=The%20ELI%20Project%20on%20Business,Council%20on%2026%20September%202019 Search in Google Scholar

https://www.efrag.org/News/Public-243/EFRAG-mandated-to-provide-recommendations-on-possible-European-Non-Financial-Reporting-Standards Search in Google Scholar

https://www.fsb-tcfd.org/ Search in Google Scholar

https://www.ifrs.org/projects/work-plan/sustainability-reporting/ Search in Google Scholar

International Financial Reporting Standards

IFRS 9 (Financial Instruments), available in IAS Adopting Regulation (see supra).Search in Google Scholar

IFRS 13 (Fair value), available in IAS Adopting Regulation (see supra).Search in Google Scholar

National Legislation

AktienGesetz of 6 September 1965 (BGBl. I S. 1089), as lastly amended on 12 December 2019 (BGBl. I S. 2637). Available at https://www.gesetze-im-internet.de/aktg/ (29 February 2020).Search in Google Scholar

Code de Commerce, consolidated text, 14 February 2020, available at https://www.legifrance.gouv.fr/affichCode.do;jsessionid=E347D702A53EBF21E06B1ACD13664FB3.tplgfr22s_2?cidTexte=LEGITEXT000005634379&dateTexte=20200226 (26 February 2020).Search in Google Scholar

Companies Act 2006, UK Public General Acts 2006 c. 46, latest available (revised) version available at http://www.legislation.gov.uk/ukpga/2006/46/contents (26 February 2020).Search in Google Scholar

Gesetz betreffend die Gesellschaften mit beschränkter Haftung in der im Bundesgesetzblatt Teil III, Gliederungsnummer 4123-1, as lastly amended on 17 July 2017 (BGBl. I S. 2446). Available at https://www.gesetze-im-internet.de/gmbhg/ (29 February 2020).Search in Google Scholar

Handelsgesetzbuch in der im Bundesgesetzblatt Teil III, Gliederungsnummer 4100-1, as latest amended 12 December 2019 (BGBl. I S. 2637). Available at https://www.gesetze-im-internet.de/hgb/index.html (29 February 2020).Search in Google Scholar

Received: 2024-01-15

Accepted: 2024-02-13

Published Online: 2025-02-12

You are currently not able to access this content.

Articles in the same Issue

https://doi.org/10.1515/ael-2024-0007

Keywords for this article

prudential regulation; company capital management; financial accounting and reporting; responsible business conduct; corporate sustainability