Europe: European Commission: Alternative capital maintenance regime

Several years ago the European Commission began to consider the feasibility of establishing an alternative to the current capital maintenance regime established by the Second Company Law Directive (77/91/EEC). In October 2006, KPMG was commissioned to undertake a study exploring the main features of the current regime (including the costs imposed) as well as that in Australia, Canada, New Zealand, California and Delaware. KPMG also considered four academic proposals for alternative regimes to the current capital maintenance rules. The KPMG study has now been published and is available here. Background information is available here.