SEC and PCAOB To Take Action on Section 404 Internal Controls Reporting Matters The SEC recently announced a series of actions it and the PCAOB intend to take to improve the implementation of the internal control reporting requirements of Section 404 of the Sarbanes-Oxley Act of 2002. These actions include: • Providing Guidance for Companies ...
Things To Think About This Proxy Season Prior to Drafting Update director and officer questionnaires, including “independence” criteria for directors Most public companies follow the “best practice” of having all directors and executive officers complete a standard form of questionnaire each year to verify the accuracy of information about the person that is reported in the 10-K Report and proxy statement ...
The European Commission published its Recommendation on the role of non-executive directors in February 2005. Member States are invited, but not required, to promote the application of the Recommendation's principles by 30 June 2006. The principles are applicable to listed companies, although Member States are allowed to extend the ambit to unlisted companies. The Recommendation adopts the comply or explain approach utilised by the UK Combined Code ...
On February 2, 2006, the Quebec Court of Appeal rendered an interesting judgement involving directors’ liabilities in the case of Johnson and Marcil v. André Arthur et al (500-09-012808-028), a lawsuit for slander ...
Last November the expert group appointed by the Scottish Executive to consider a statutory offence of corporate culpable homicide issued its report. As expected, the group proposed a new statutory offence of corporate killing. It recommended that this should apply to incorporated companies and, as far as possible, to unincorporated and Crown bodies. The report recommended that two individual offences (applying to named persons) be introduced ...
R E M E M B E R • A director must act in the best interests of the company at all times. • A director may not favour the interests of the shareholder or the member who arranged for his election if that person’s interests differ from the interests of the company ...
Twenty years after Portugal’s accession to the European Community, it has begun to be understood in Portugal that membership of the EU does not merely constitute for us a source of subsidies and aids of any kind, increasingly less so since the latest enlargement from fifteen to twenty-five Member States. It is, rather, a source of regulation for companies (and directly or indirectly for consumers) in a wide range of economic areas ...
There are three possible courses of action in this situation. These are: Derivative action A derivative action is brought under common law by a member on behalf of a company in respect of a wrong done to that company. Remedies awarded are for the benefit of the company. Derivative actions are an option where the company itself could sue and there has been a fraud on the minority, illegality or a failure to approve a matter by the members passing an appropriate resolution ...
On March 15, 2006, the German Federal Cartel Office published a new Leniency Program, which replaces the previous Notice 68 of 2000. With this Program, the FCO offers cartel participants wishing to leave a cartel and cooperate with the FCO immunity from or reduction of fines. A summary of the new Program can be found at: http://www.worldservicesgroup.com/files/groups/1494_0330023908 ...
In April last year, companies were given greater flexibility in protecting their directors against certain liabilities as a result of changes to the law. The changes recognised increasing concern over directors' exposure to liability arising from legal proceedings brought by third parties. The Companies Actprohibits a company from exempting directors in respect of liability if negligent, in default or in breach of duty or trust ...
The courts have always considered Quebec’s class action legislation to be strictly procedural and not modifying substantive law. Normally a person can only sue if he has a legal relationship with the defendant, meaning that he has a personal right of action. Thus, in the case of Bouchard v. Agropur coopérative et al,1 Mr. Justice J. Viens refused to authorize Bouchard to institute a class action against dairies from which he had not purchased milk. However, Mr. Justice M ...
Some important changes to the Act respecting the legal publicity of sole proprietorships, partnerships and legal persons (the “Act”) took place effective January 1st, 2006.The Act generally applies to all legal persons, partnerships and individuals carrying on an activity in the Province of Québec and requires those entities to register with the Enterprise registrar ...
On 13 December 2005, the European Court of Justice ("ECJ") found Marks and Spencer plc ("M&S") could claim group tax relief from UK tax authorities in relation to the losses incurred by its former European subsidiaries that had ceased trading in Belgium, France and Germany in 2001. M&S argued that just as UK resident companies in a group may set off their profits and losses among themselves, so the same should be possible for the losses of foreign subsidiaries ...
Gas Natural’s high profile courting of Endesa has had a choppy ride on the roller coaster ship of public takeovers. Not only is the desired companion resisting the marriage, but also is she summoning the high waves of competition law in her defence. Not much of the public debate of the competition law aspects is focussed on the merits of perhaps one of the last industry transforming mergers in the Spanish energy markets ...
The new Irish Commercial Court is living up to expectations by providing a fast and effective means of resolving commercial disputes. A&L Goodbody recently secured for a full hearing within two days of a case being accepted by the Court. The matter involved an arbitrator's referral of a point of law. The speed as well as the terms of decision were crucial in protecting the client's interest ...
Scottish Enterprise has a number of schemes to make it easier for small to medium-sized businesses to access growth funding, such as a loan, equity finance - where the investors take shares in your company - or a combination of the two ...
On December 31, 2005, amendments to Ontario’s Securities Act will come into effect to provide investors with a new recourse against companies and their directors, officers, employees and consultants for any misrepresentation in their public documents or public oral statements, or for failure to make timely disclosure of material changes in the company’s circumstances ...
“We consider that the Competition Act, 2002 captures the bulk of the anti-competitive practices which the Groceries Order was originally designed to prevent. However, we consider it desirable to significantly strengthen the Act in some respects and particularly to specially prohibit resale price maintenance, unfair discrimination and “hello money”. Such provisions will, henceforth, be enforced by the Competition Authority ...
In the Matter of Swanpool Ltd (in Voluntary Liquidation) and Travelodge Ltd (in Voluntary Liquidation) and in the Matter of Section 150 of the Companies Act 1990; McLaughlin v Lannen and Lannen, High Court, Clarke J, 4 November 2005 Facts: McLaughlin, the liquidator of Swanpool and Travelodge, sought a declaration that two directors of the companies be restricted (i.e. prohibited from acting as directors of companies for 5 years) ...
In the Matter of James McMenamin Ltd. (in Voluntary Liquidation), High Court, Laffoy J, 18 April 2005 Facts: In this case, a company in liquidation suddenly found funds that were previously unavailable, in an amount that would allow it to trade successfully again. Therefore, one of the contributories of the company sought to have the liquidation halted so that the company could resume trading as normal. The company’s sole asset was a 26-acre plot of land ...
Academics and commentators in general have always been interested in the study of the enforcement process in regulatory agencies. In the last years, with the rise of the regulatory state[1] and thus the increased number of regulatory agencies, the number of studies has only increased. There is an important amount of literature on the subject and an increasing number of theories and models to explain regulatory enforcement ...
The recent decision of the Court of Quebec, Small Claims Division, in the case of Spénard v. Promutuel Bois-Francs, société mutuelle d’assurance générale,1 revisited the issue of the right of an insurer to seek the nullity of an insurance policy based on an insured’s failure to disclose a prior conviction under the Young Offenders Act. The Plaintiff claimed $5,100 from his insurer for property stolen from his home between January 24 and January 27, 2003 ...
Commission decision in Case No. COMP/39.116/B-2 – Coca-Cola issued pursuant to Article 9(1) of the Council Regulation 1/2003 On 22 June 2005 the Commission adopted a decision under Article 9(1) of the Council Regulation no. 1/2003 approving commitments offered by the Coca-Cola Company, Bottling Holding (Luxembourg), Coca-Cola Erfrischugsgetränke AG and Coca-Cola Hellenic Bottling Company (hereinafter "Coca-Cola") on 19 October 2004 ...
