European company law and corporate governance : pre and post financial crisis

Abstract

To provide a better understanding of EU company law and corporate governance developments, this study presents a critical assessment of the evolving process of the Harmonisation Programme. Rather than merely analysing the alternating approaches adopted in the past 50 years, this study focuses upon how, why and in what ways these transformations were occurring. A comparative analysis of the different legislative processes adopted by the European Commission is crucial in determining which path the Commission should follow in the process of the modernisation of EU company law and corporate governance. This study also critically examines the discussion surrounding the financial crisis of 2008, in particular the role of shareholders and the lack of employee involvement. Drawing vital lessons from the crisis, this study addresses the crucial question as to whether the means of regulation used pre the financial crisis contributed to the drastic and catastrophic effects of the crisis. It then follows by proposing a number of recommendations, which could lead to better corporate governance structures. In particular, it examines the question as to whether a revival of the early Harmonisation Programme is possible and it seeks to address plausible solutions to deal with the difficulties encountered during the crisis.