EU Gives Romania, Four Other Member States Two Months To Modify National Corporate Legislation

“The Commission will send reasoned opinions to Belgium, Spain, Luxembourg, Portugal and Romania regarding the directive simplifying the formation, maintenance and alteration of companies' capital,” the Commission said in a statement.

A reasoned opinion is the final stage before the case is referred to the European Court of Justice.

The directive modifying the regime of formation, maintenance and alteration of companies’ capital was adopted in 2006. It aims to facilitate and simplify the raising of capital and the restructuring of capital ownership in public limited liability companies.

It enables member states, under certain conditions, to discharge companies from specific reporting requirements and to facilitate the restructuring of capital ownership and also provides creditors with safeguards in case of capital cuts, the Commission said.

Romania joined the EU in January 2007.