28th February 2014

Large companies required to disclose new non-financial data

The MEPs and representatives of the Member States have reached an informal agreement on a new legislation requiring large companies to disclose more non-financial data. Listed companies of more than 500 employees, as well as those large companies the Member States would consider of public relevance, will be required to file annual reports on issues such as corporate social responsibility, human rights respect, environmental protection, anti-corruption measures, boards diversity and others. It is estimated that around 6000 entreprises will be affected by this new obligation. As a result of the compromise, however, the companies will not be required to report their revenues and profits on a country-by-country basis, as was previously suggested by the Commission. This measure was previously included in the Commission´s proposal as a result of European Council conclusions of 22 May 2013 relating to tax measures. The Commission will probably propose this measure again when revising this legislation in 2018. For the measures to come in effect, the proposal will have to be formally approved by the European Parliament on plenary session in April and then by the ministers in the Council.

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Members of the American Chamber of Commerce in the Czech Republic