Second Company Law Directive:Formation of Public Limited Liability Companies and Maintenance of Capital
The Second Council Directive (77/91/EEC) provides a European framework for the formation of public limited liability companies and the maintenance and alteration of their capital. The provisions in the directive cover minimum share capital requirements, distributions to shareholders and increases and reductions in capital. The directive sets out information which must appear in the statutes or the instrument of incorporation of the company. It also lists certain other information which must be made public such as registered office, types of shares, subscribed capital etc.
As regards company formation the directive determines the amount and composition of the minimum subscribed capital, rules governing the issue and the price paid for shares and the form of consideration acceptable. The link to the Second Council Directive 77/91/EEC
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