The Commission’s Action Plan for Financing Sustainable Growth and its Corporate Governance Implications

17 Pages Posted: 19 Sep 2018 Last revised: 2 Oct 2018

See all articles by Florian Möslein

Florian Möslein

Universität Marburg (Institut für Handels- und Wirtschaftsrecht); Munich Center on Governance (MCG)

Karsten Engsig Sørensen

Aarhus University – Aarhus BSS, Department of Law

Date Written: September 19, 2018

Abstract

With the adoption of the Action Plan ‘Financing Sustainable Growth’ that has been published by the Commission in March 2018 the Commission is taking a range of steps towards inciting listed companies to conduct their business in a more sustainable or long-term oriented manner. In fact, this is not a new policy as similar policy goals were evident in the Directive on Non-financial Reporting (Directive 2014/95) and the revised Shareholder Rights Directive (Directive 2017/828). We show that many elements in the Action Plan are intended to have an impact on the governance of listed companies, and even touch on core company law issues. After analysing those elements in the Action Plan that aim at affecting corporate governance in listed companies, we conclude that the Commission's new proposals are different in at least three different respects from earlier initiatives with a similar aim: (1.) Its scope is broader, due to the Action Plan’s focus on the financial market as a whole, (2.) its regulatory instruments are more diverse, and (3.) its regulatory intensity is less soft.

Keywords: Sustainable growth, corporate governance implications

JEL Classification: K22

Suggested Citation

Möslein, Florian and Sørensen, Karsten Engsig, The Commission’s Action Plan for Financing Sustainable Growth and its Corporate Governance Implications (September 19, 2018). Nordic & European Company Law Working Paper No. 18-17. Available at SSRN: https://ssrn.com/abstract=3251731 or http://dx.doi.org/10.2139/ssrn.3251731

Florian Möslein (Contact Author)

Universität Marburg (Institut für Handels- und Wirtschaftsrecht) ( email )

Savignyhaus
Universitätsstraße 6
Marburg, 35032
Germany

HOME PAGE: http://www.uni-marburg.de/fb01/lehrstuehle/zivilrecht/moeslein

Munich Center on Governance (MCG) ( email )

Geschwister-Scholl-Platz 1
Munich, Bavaria 80539
Germany

HOME PAGE: http://www.mcg.uni-muenchen.de

Karsten Engsig Sørensen

Aarhus University – Aarhus BSS, Department of Law ( email )

Bartholins Allé 16, Building 1410, Room 246
DK-8000 Aarhus C
Denmark

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