ARCHIVES HISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(78)759
Vol.1978/0276

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(78)759 final
Brussels-15January1979
Proposalfora
COUNCILDIRECTIVE
oninformation tobepublished onaregularbasisby
companies whosetransferable securities areadmitted
toofficiaistockexchangelisting/^>χ
(submittedtotheCouncilbytheCommissions
C0M(78)759final.

Explanatory memorandum
INTRODUCTION
Officialstockexchangesareanelementofprimaryimportance inthe
capitalmarketsoftheMemberStates.Thismeansthatinpromotinginterpene­
trationasbetweenoneEECstockexchangeandanother,asignificant stepis
takentowardsthecreationofaEuropeancapitalmarket.
Suchinterpenetrat ionpresupposes thatissuersfromoneMemberStateare
abletobecomequotedontheofficialstockexchangesofoneormoreoftheother
MemberStates,withoutobstaclesbeingplacedintheirwayintheshapeof
differingrulesandregulations .Interpenetration ismademoredifficult by
differences intherulesandregulations applyingtostockexchangesinthe
variousMemberStates.Itiswithaviewtoreducingsuchdifferences andto
achieving afirststageofcoordination thattheCommission hasalreadyfoi–
wardedtotheCouncilproposalsfordirectivesrelatingtotheprospectus to
1bepublishedwhensecurities areadmittedtoofficialstockexchangelisting
2
^ndtoconditionsofadmissiontoofficialstockexchangelisting.jhe
nresentproposalrepresents anessential complement tothesetwoproposals.
Itshouldbeborneinmindthatallthreeproposals arealsointended
toensurethatstandardsofinvestorprotection andinformation aremain­
tainedatahighandmoreuniformstandardthroughout theCommunity.
.v;:; +
""k + +
Originalproposalof5.10.1972,modifiedon8.12.1975,OJC131of13.12.1972 .
2..Originalproposalof30.12.1975,modifiedon3.11.1976,OJC56of10.3.1976.

Thedirective relating totheadmission prospectus regulates ona
•■inimum basis information tobeprovided toinvestors atthemoment when
securities areadmitted toofficial quotation .TheCommission considers it
essential tosupplement this measure byproviding toinvestors andto
ootential investors information about theissuers ofsuch securities during
meentire period that thesecurities areadmitted toquotation .
AtCommunity level ,this second type ofinformation istobemade
available asfollows :
1.Byrequiring quoted companies tomake their annual accounts available
toinvestors intheMember States where the securities are quoted ;
2.byrequiring information ofanexceptional nature which isprice-sensitive
tobepublished assoon aspossible after theevent inquestion ;
3.byproviding that half-yearly reports relating tothebusiness ofquoted
companies during thefirst sixmonths ofeach oftheir financial years
bepublished onaregular basis .
Thefirst tworequirements mentioned above arealready provided for
intheproposal relating toconditions ofadmission toofficial stock exchange
listing ;thethird requirement isdealt with inthepresent proposal .
Theprinciple oftheobligation topublish regular information was
originally contained intheproposal relating toconditions ofadmission to
official stock exchange listing ,theintention being todraw upaseparate
proposal for adirective atalater stage containing detailed rules onthis
subject .Itappeared ,however ,that this approach would have caused diffi­
culties inthose Member States which donotasyethave ahalf-yearly reporting
requirement -such Member States would have been obliged tointroduce such an
obligation ,butwithout knowing thecontent oftheinformation that would be
required later on.Itwasdecided therefore todelete all references to
continuing information from theproposal relating toconditions ofadmission ,
andtodeal with this topic entirely inthecontext ofthepresent proposal .

-3-
THE INDIVIDUAL ARTICLES
Articles 1and 2
Thedirective will apply tocompanies whose transferable securities
areofficially listed onanEECstock exchange .Companies areunder a
particular obligation tokeep theinvesting public informed astotheir affairs
once they apply fortheir securities tobetraded onanofficial market .
Itshould benoted that thedirective will therefore also apply tocompanies
from third countries provided that their securities are listed within the
Community .
The securities towhich thedirective will apply are shares ,con­
vertible debentures ,exchangeable debentures ,debentures with warrants
attached ,andparticipating debentures .This list does notinclude "normal "
debentures ;theholder ofsuch asecurity isentitled toreceive payment of
interest atfixed dates ,andalso tobereimbursed the capital sum atthe end
oftheperiod ofthe loan .Hence ,itdoes notappear necessary toprovide
such adebenture holder with regular information about development ofthe
company 'sbusiness .Itshould beborne inmind that theproposal for adirective
relating toconditions ofadmission obliges all listed companies ,including
those having only "normal "debentures admitted toofficial quotation ,tomake
their annual accounts available tothepublic sothat the holder ofa"normal "
ebenture will have access totheannual accounts ,which appear sufficient
osatisfy hisinformation requirements .
Inthecase oftheother types ofdebenture mentioned inArticle 1
itisconsidered that thedebenture holder isreally equivalent toashare -
older ,because thevalue ofhissecurity ismore closely related tothe
rogress ofthe company 'sbusiness ,andthat heshould therefore receive the
same information asshareholders .

Theterm "participating debentures "perhaps requires some
explanation :these debentures areencountered mainly inBelgium ,andtheir
characteristic isthat theamount ofinterest payable depends inwhole or
inpart ontheresults ofthecompany .
Itshould benoted that thedirective will apply notonly tocompanies
whose securities arelisted after thedate ofitscoming into force ,butalso
toallcompanies whose securities arealready officially listed atthat moment .
Finally ,thedirective will notapply tocompanies which areinvest­
ment companies oftheopen-ended type .Such companies will ,ingeneral ,come
within thescope oftheproposal for adirective relating tocollective
1investment undertakings fortransferable securities ,which provides particular
roles asregards information tobegiven toinvestors .
Article 3
Thedirective represents only afirst step ontheroad toharmonization
asitdidnotappear possible toachieve agreater degree ofharmonization at
this stage .This being thecase ,thedirective contains rules which areminimum
ones only .This means that Member States which wish toimpose more stringent
rules oncompanies than those contained inthedirective arefree todoso.
Asanexample ofthis ,thepractice intheFederal Republic ofGermany isto
publish atleast twohalf-yearly reports each year -thedirective requires
only asingle half-yearly report during thecourse ofthefinancial year ..The
directive will permit theGerman practice tocontinue .Again ,inatleast one
••
Member State ,quoted companies arerequired togive netprofit figures in
their half-yearly reports -thedirective contains aless stringent requirement
inthis connection (gross operating result ),butwill notprevent netprofit
figures from being continued tobegiven .
Such more stringent rules must ,however ,beofgeneral application
forallcompanies ,orforindividual classes ofcompanies ,soastoensure
equal treatment forallcompanies ,whether ornotthey befrom thesame Member
State inwhich thesecurities arequoted .
1Original proposal of29.4.1976 ,modified on9.6.1977 ,OJC171of26.7.1976 .

τ»
Articles4,5and6
Thehalf-yearly reportmustrelatetothefirstsixmonthsofthe
company'sfinancialyear^andbepublishednolaterthanthreemonthsafter
theendoftherelevantperiod.
Itwasnotconsideredappropriatetorequirethepublication ofa
secondsixmonthlyreport,becausetheannualaccountsofcompaniesgenerally
appearwithinacomparatively shortperiodoftheendofthefinancialyear,
andtorequireasecondhalf-yearlyreportonlyafewweeksaheadoftheannual
accountsmightresultinunnecessaryduplication andconfusion.
/
Thereportistobedividedintotwosections,firstly,figuresof.aflnandsl
nature,setout1ntheformofatable,andsecondly,anexplanatorystatement
whichshouldpermitinvestorstounderstandthetruesignificance ofsuch
figures,andgenerallytoappreciate howthecompany'sbusinesshasfared
duringtherelevantperiod.
Itwillbenotedthatthetypeofinformationrequiredrelatestothe
caseofatypicalindustrialorcommercial coupany.Thereisofcourseawide
varietyofothertypesofcompanyquotedonthestockexchange(bankingand
insurancecompanies,propertycompanies,investmentcompanies,etc.)forwhich
theinformationrequiredisnotappropriate,Itdidnotappearpossible,at
thepresenttime,todrawuprulesatCommunitylevelforeachandeverytype?
ofcompany;atthisstageitseemedsufficienttoprovide(inArticle11(3))
thatthecompetentauthoritiesshallmakesuitableadaptationstotheinformation
tobegiven.Article11(3)doesnotpermitanylesseningofthestandardof
informationtobegiven,butratherensuresthatequivalentinformationis
provided,inaccordancewiththeparticularnatureofthecompanyconcerned.
TheContactCommittee mentionedinArticle12couldusefullydiscussways
inwhichthedirectiveisadaptedinthisway1nthevariousMemberStates,so
thatnounduedivergencesarise*TheCommissioncould,inanyevent,return
tothissubjectatalaterstage,andpossiblyprovidespecificrulesfor
certainparticulartypesof"issuer(e.g.banksandInsurancecompanies). '

ThefinancialfiguresrequiredinArticle5(2)aredefined(in
Article6)byreferencetotermsusedintheArticlesrelatingtothelayout
oftheprofitandlossaccountscontainedintheFourthCouncilDirectiveon
theannualaccountsofcertaintypesofcompanies^.Thereferencetoterms
usedintheFourthDirectiveismerelyfordefinitionpurposes,soastoclaril
themeaningoftherequirements ofthepresentdirective.
Theexplanatory statementwillinpracticebethedirectors'responsibility to
establish,anditscontentsaredealtwithinArticle5(4),including alist
ofspecificitemswhichmustinanyeventbementioned,unlesssuchinformation
isofminorimportanceonly.Inthelattercase,itcouldbeomittedunder
Article11(4)firsthyphen.
Thedefinition ofnetturnoverinArticle6corresponds toArticle28
oftheFourthDirectivementioned above,butturnoverattributable tothe
saleofproductsandprovisionofserviceswithinagroupofcompaniesisto
beexcluded.
Article7
Itisconsideredthatabreakdownofturnoverbyreferencetobranches
ofactivityandgeographical marketisasignificant itemofinformation which
shouldbemadeavailabletoinvestors;thepresentdirectivefollowstheFourth
Directiveandtheadmissionprospectusdirectiveinthisregard.
Article8
ThisArticledoesnotseektoimposeanynewobligation asregards
consolidation ofaccounts,butratherprovidesthatbasicallythesametreat­
mentshallbeadoptedforthehalf-yearly reportasforthecompany'sannual
accounts.
Directive N°78/660/FEC-OJL222of14.8.1978

Article9
Theintentionisthatthehalf-yearly information shouldbeavailable
tothewidestpossiblenumberofinvestors,whethertheyalreadyholdsecurities
inthecompanyor.,aremerelyprospective investors.
Publication ofthefullhalf-yearly reportinnewspapersisgenerally
therrcstimmediatemeansofachievingthisobjective,butitshouldbenoted
thatitwouldalsobesufficienttocallthepublic'sattentiontothe
existenceofthehalf-yearly reportbyabriefannouncement inthepress,which
wouldmentionwherecopiesofthereportcouldbeobtained.
Copiesofthehalf-yearly reportmustbesuppliedtothecompetent
authorities ineachMemberStatethatthesecurities arequoted,butthis
doesnotimplythatthoseauthorities areresponsible forcheckingtheaccuracy
oftheinformation provided.
Article10
Thedirective doesnotrequirethehalf-yearly financialinformation
tobeaudited,butrequires astatementtobeincludedastowhetherornot
anaudithasbeencarriedout,andifso,astowhetheranyqualifications
weremadebytheauditor.
Article11
Article11(3)providesforthepossibility ofadaptations tobemade
otherequirements ofthedirectiveinaccordance withthenatureofthe
.cmpany'sbusiness(seealsothecommentsaboverelatingtoArticle5).
ItshouldbeborneinmindthatthisArticleiswidelydraftedand
dr,esnotlimititselftotheinformation requiredunderArticle5.Anadaptation
.jc-<l.forexamplebemadetotherequirement astowhenthereporthastobe
published,orastotheperiodtobecovered.Thismight,forexample,be
roisssaryinthecaseofacompanywhosebusinesswasofaseasonalnature,

-8-
andforwhichtheobservanceofthesamerulesasothercompanieswouldnot
permitinvestorstohaveasatisfactorypictureofthedevelopmentofthe
company'sbusinessovertherelevantperiod.
Article11(4)providesforadispensation fromtherequirementto
publishinformationinthecasesspecified.Suchadispensation mightoperate
ifthecompanycouldshow,forexample,thatabreakdownofitsturnoverby
geographical marketwasundulyprejudicialtoitsinterests,andthatsuch
information wasnotessentialtobegiventoinvestors.
Articles12,13and14
Thesearestandardarticlesandcallfornoespecial comment,except
fortherequirement containedinArticle13(2).
ThisprovisionissimilartoArticle55(2)oftheFourthDirective
relatingtotheannualaccountsofcertaintypesofcompaniesandprovidesfor
atransitional periodofoneyearforcompaniestoadaptthemselvestothe
directive'srequirements ,countingfromthedatethataMemberStatetakesthe.
measuresnecessarytocomplywiththedirective,suchdatebeingatthelatest
twoyearsfromthedateofitsnotification .Inotherwords,ifaMemberState
decidestocomplywiththedirectiveattheexpirationofaperiodof(say)
18months,itcanprovidethattheprovisionsofthedirectivewillnotcome
intoforceuntil1yearaftertheexpirationofthe18monthperiod.
Thereasonwhythisprovision hasbeenincludedisasfollows:-
Article5(3)and(4)providethatfiguresforthecorresponding periodinthe
previousfinancialyearmustbegiven.Unlessatransitional periodisprovided,
manycompanieswouldnothaveavailablefiguresrelatingtothepreviousfinancial
yearwhenthedirective comesintoforce.Thetransitional periodisaimedat
permitting companiestohavesuchfiguresavailableatthatmoment.

ProposalforaCouncilDirective
oninformation tobepublished onaregularbasisbycompanies whosetransfer­
ablesecurities areadmittedtoofficialstockexchangelisting
THECOUNCILOFTHEEUROPEAN COMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,
andinparticularArticle54(3)(g)thereof,
HavingregardtotheproposalfromtheCommission,
HavingregardtotheopinionoftheEuropeanParliament,
HavingregardtotheopinionoftheEconomicandSocialCommittee,
WhereastheSixthCouncilDirective of concerning the
content,checkinganddistribution oftheprospectustobepublished when
securities issuedbycompanieswithinthemeaningofthesecondparagraph
ofArticle58oftheTreatyareadmittedtoofficialstockexchangelisting(1)
seekstoensureimprovedprotection ofinvestors andagreaterdegreeof
equivalence fromcountrytocountryintheprotection provided,bycoordinating
requirements astotheinformation tobepublishedatthetimeofadmission;
Whereas,inthecaseofsecurities admittedtoofficialstockexchangelisting,
theprotection ofinvestorsrequiresthattheselatterbesuppliedwithappropriate
reqularinformation throughout theentireperiodduringwhichthesecurities are
listed;whereascoordination ofthisregularinformation hassimilarobjectives
tothoseenvisagedfortheprospectus,namelytoimprovesuchprotection
andtomakeitmoreequivalent,tomakesecurities moreattractive toin­
vestors,tofacilitate thequotationofthesesecurities onmorethanone
stockexchangeintheCommunity,andinsodoingtocontribute towardsthe
establishment ofagenuineCommunitycapitalmarketbypermitting afuller
interpenetration ofsecurities markets;
vinereas,underCouncilDirective of coordinating the
-^nditionsfortheadmissionofsecuritiestoofficialstockexchange
iistinq(2),quotedcompaniesmustattheendofthefinancialyearmake
Mailabletoinvestorstheirannualaccountsandreportgivinginformation
'4-;.#y'j-i.f.
.r'.
OJNoL
itïOJNOL

onthecompanyforthewholeofthefinancialyear;whereastheFourth
CouncilDirective7S/660/EECof25July1978(3)hascoordinatedtn.laws,regu­
latesandadministrative provisionsoftheMemberStatesconcerningtneannual
accountsofcertaintypesofcompanies;
Whereasthecompanyshouldalso,atleastonceduringthefinancialyear,
makeavailabletoinvestors areportonthecompany'sbusiness;whereasthe
presentDirectivecan,consequently,beconfinedtocoordinating thecontent
anddistribution ofasinglereportcoveringthefirstsixfiionthsofthe
financialyear;
Whereas,however,inthecaseofordinarydebentures,becauseoftherights
theyconferontheirbearer,theprotectionofinvestorsbymeansofthe
publication ofahalf-yearly reportisnotessential;whereasconsequently
regularinformation needstobecoordinated onlyforcompanies whoseshares,
convertible debentures,exchangeable debentures,debentureswithwarrants
attachedorparticipating debentures areadmittedtoofficialstockexchange
listing;
Whereasthehalf-yearly reportmustenabletheinvestorstomakeaninformed
appraisalofthegeneraldevelopment ofthecompany'sactivityduringthe
periodcoveredbythereport;whereas,however,thisreportneedcontainonly
theessentialdetailsonthefinancialpositionandgeneralprogressofthe
businessofthecompanyinquestion;
Whereascoordination shouldbeachievedbystagesandshouldtherefore be
confinedatpresenttotheestablishment ofminimumrules;
Whereas,inordertotakeaccountofdifficulties resultingfromthecurrent
stateoflegislation incertainMemberStates,alongerperiodmaybeprovided
forcompaniestoadaptthemselvestotheprovisionsoftheDirectivethan
thatprovidedfortheadaptationofnationallegislation;
Whereas,soastoensureeffectiveprotectionofinvestorsandtheproper
operationofstockexchanges,therulesrelatingtoregularinformation tobe
oublishedbycompanieswhosesecuritiesareadmittedtoofficialstockexchange
(3)OJNoL222,14.8.1978,p.11

ListingwithintheCommunityshouldapplynotonlytocompaniesfrom
MemberStatesreferredtointhesecondparagraphofArticle58ofthe
"reaty,butalsotocompaniesfromthirdcountries;
HASADOPTEDTHISDIRECTIVE :

SectionI:Generalprovisions andfieldofapplication
Article 1
*
1.ThisDirectiveshallapplytocompanies whoseshares,convertible
debentures,exchangeable debentures,debentures carryingwarrantsorparti­
cipatingdebentures areadmittedtoofficiallistingonastockexchange
situatedoroperatingwithintheterritoryofaMemberState,whethersuch
securities themselves orcertificates representing themareadmittedand
whethersuchadmissionprecedesorfollowsthedatewhenthisDirectiveenters
intoforce.
2.ThisDirectiveshall,however,notapplytoinvestment companies
otherthanoftheclosed-end type.
ForthepurposesofthisDirective,"investment companiesotherthan
oftheclosed-endtyp^'shallmeaninvestment companies:
-whoseobjectisthecollectiveinvestmentofcapitalprovidedbythepublic,
andwhichoperateontheprincipleofriskspreading;
and
-whoseunitsare,attherequestofholders,repurchased orredeemed,directly
orindirectly,asachargeontheassetsofthesecompanies.
Actiontakenbyacompanytoensurethatthestockexchangevalue
ofitsunitsdoesnotsignificantly varyfromthenetassetvalueshallbe
regardedasequivalenttosuchrepurchaseorredemption.

-2-
Article2
ThecompaniesreferredtoinArticle1shallpublish,eachfinancial
year,ahalf-yearlyreportrelatingtotheiractivityduringthefirstsix
monthsofthei~>financialyear.
Article3
TheMemberStatesmaymakecompaniestowhichthisDirectiveapplies
subjecttomorerigorousobligations thanthosecontainedinthisDirective,or
toadditionalobligations,providedthattheyareofgeneralapplication for
allcompaniesorforindividualclassesofcompany.
SectionII:Publication andcontentsofhalf-yearly report
Article A
Thehalf-yearlyreportshallbepublishedwithinthreemonthsofthe
endoftherelevantsix-monthperiod.
.Article5
1.Thehalf-yearlyreportshallconsistoffiguresandanexplanatory
statementrelatingtothecompany'sbusinessduringtherelevantsix-month
period.
2y.;'Thefigures,presentedintableform,shallshowatleastthe
1lowing:
'f.^fetturnover;
motheroperatingincome;
'tiîïiïv"' ' 'V^peratingcharges;
.1operatingresuit;:•1
*$£p>terinidividends(ifany)paidorproposed.
t,'Ml'-1.
'Againsteachoftheabovefigures,thefigureforthecorresponding
,sV>V-v
periodintheprecedingfinancialyearshaltalsobeshown.

4.Theexplanatory statementshallenableinvestorstomake
aninformedappraisalofthecompany'sbusiness
duringtherelevantperiodandtomakeacomparisonwiththecorresponding
periodofthepreviousfinancialyear.Theexplanatorystatementshallrelate
tothefiguresreferredtoinparagraph2andtoatleastthefollowingitems,
givingsupportingfigureswheneverappropriate :
-thenumberofpersonsemployed;
-investmentcarriedoutanddecisionstakenastofutureinvestment;
-stateoftheorderbook;
-thegeneralsituationregardingstocksoffinishedproducts;
-thedegreeofcapacityutilization;
-anynewproductsoractivitieswhichhavehadasignificanteffecton
turnover .
Article6
1.ForthepurposesofthisDirective:
-netturnovershallcomprisetheamountsderivedfromthesaleofproducts
andtheprovisionofservicesfallingwithinthecompany'sordinaryacti­
vities,afterdeductionofsalesrebatesandofvalueaddedtaxandother
taxesdirectlylinkedtotheturnover.Wherethehalf-yearly reportisdrawn
uponaconsolidated basis,netturnovershallnotcomprisethesaleof
productsandprovisionofservicesbetweencompaniesformingpartofthe
group;
-otheroperatingincomeshallcompriseitems2,3and4inArticle23and
theirequivalents inArticle24,anditem6ofArticle25anditsequivalent
inArticle26oftheFourthCouncilDirectiveof25July1978ontheannual
accountsofcertaintypesofcompanies;
-operatingchargesshallcompriseitems5,6,7and8inArticle23andtheir
equivalents inArticles24anditems2,4.and5ofArticle25andtheir
equivalentsinArticle26oftheFourthDirectivereferredtoabove;

_L-
-grossoperatingresultisthedifference between(a)thenetturnoverto­
getherwithotheroperating incomeand(b)operatingcharges.
/
2.Inresoectofcompanies whoseannualaccountsdonothavetobe
drawnupinaccordance withtheFourthDirectivereferredtoabove,thein­
formationdefinedinthesecondandthirdindentsofparagraph 1aboveshall
beestablished inanequivalent manner.
Article7
Netturnovershallbebrokendownbycategories ofactivityand
intogeographical markets,insofaras,takingaccountofthemannerinwhich
thesaleofproductsandtheprovisionofservicesfallingwithinthecompany's
ordinaryactivities areorganized,thesecategories andmarketsdiffer
substantially fromoneanother.
Article8
1.Ifthecompanypreparesconsolidated annualaccountsonly,thehalf-
yearlyreportshallbedrawnupinconsolidated form.
2.Ifthecompanypreparesbothunconsolidated accountsandconsolidated
accounts,thehalf-yearly reportshallbedrawnupinbothforms.Inthatevent,
'owever,thecompetentauthority mayauthorizethecompanytodrawupthehalf-yearly
reporteitherinunconsolidated orinconsolidated form,providedthatthe
otherformdoesnotconveyanysignificant supplementary information .
cle9
Thehalf-yearly reportshallbepublishedinoneormorenewspapers
distributed throughoutthecountryordistributed widely,orinthenational
(j.M^i.te,orshallbemadeavailabletothepubliceitherinwritinginplaces
ij|i|£atedannouncements tobepublishedinoneormorenewspapersdistri-
throughout thecountryorwidelydistributed,orbyotherequivalent
rr,e£<i$approvedbythecompetentauthorities .

-5-v
Ifthetransferable securities areadmittedtoofficiallisting
inmorethanoneMemberState,thehalf-yearly reportshallbepublished
simultaneously ineachsuchMemberState.
2. Thehalf-yearlyreportshallbepublishedintheofficiallanguage
orlanguagesorinoneoftheofficiallanguagesorinanotherlanguage,
providedthat,intheStateconcerned,suchofficiallanguageorlanguages
orsuchotherlanguagearecustomaryinthesphereoffinanceandare
acceptedbythecompetentauthorities .
3. Thecompanyshallsendacopyofthehalf-yearly reportsimultaneous­
ly,notlaterthanthetimeofitspublication,tothecompetentauthorities
ofeachMemberStateinwhichthetransferable securities areadmittedto
officiallisting.
Article10
Thehalf-yearly reportmuststatewhetherthefinancialinformation
containedthereinhasorhasnotbeencheckedbytheofficialauditorofthe
company'saccounts.Iftheauditorhasmadeanyqualifications ,thesemustalso
bestated.
SectionIII:Powersofthecompetentauthorities
Article11
*
1. TheMemberStatesshalldesignatethenationalauthorityor
authorities responsible forensuringthattheruleslaiddowninthisDirective
areapplied.TheyshallinformtheCommission accordingly ,indicating,if
appropriate,howdutieshavebeenallocated.
2. TheMemberStatesshallensurethatthecompetentauthorities are
investedwithsuchauthorityandsuchpowersasmaybenecessaryforcarrying
outtheirtask.
3.Incaseswhereparticular requirements ofthisDirectivearein­
appropriatetothecompany'ssphereofactivity,thecompetentauthoritiesshall
ensurethatsuitableadaptations aremadetotheserequirements .

-6-
4.Thecompetentauthorities mayexemptthecompanyfrompublishing any
informationrequiredbythisDirectiveiftheyaresatisfiedthat:
-suchinformation isofminorimportanceonlyandisunlikelytoinfluence
assessmentoft'hedevelopment ofthecompany'sbusiness;
-disclosureofsuchinformation wouldbecontrarytothepublicinterestor
seriouslydetrimental tothecompany,providedthat,inthelattercase,
non-publication isnotlikelytomisleadthepublicwithregardtofactsand
circumstances essentialforassessment ofthecompany'stransferable securities
referredtoinArticle 1.
5.Theprovisions ofparagraphs 3and4shallalsoapplytothemore
rigorousoradditionalobligations imposedpursuanttoArticle3.
SectionIV:ContactCommittee
Article12
TheContactCommitteeestablished bytheCouncilDirective
ofcoordinating theconditionsfortheadmissionofsecurities to
officialstockexchangelistingshallalsohaveasitsfunction:
(a)tofacilitate,withoutprejudicetotheprovisions ofArticles169and170
/■oftheTreaty,harmonizedapplication oftheDirectivethroughregular
consultations onanypracticalproblemsarisingfromitsapplication,on
whichexchangesofopinionaredeemeduseful;
'b>facilitate theestablishment ofaconcertedattitudebetweentheMember
Instatesonthemorerigorousoradditionalobligationswhichtheymaylay
istownatpurelynationallevelpursuanttoArticle3;
(cpltoadvisetheCommission,ifnecessary,onanysupplementsoramendments
||»*pbemadetotheDirective.

-7-V
Section V;Final provisions
Article 13
1. Member States shall take themeasures necessary inorder tocomply
with this Directive within twoyears ofitsnotification andshall forthwith
inform the Commission thereof .
2. TheMember States maystipulate that themeasures referred toin
paragraph 1shall notapply until oneyear after theend oftheperiod pro­
vided for inthat paragraph .
3. With effect from thenotification ofthis Directive ,Member States shall
communicate totheCommission the texts ofthe main laws ,regulations and
administrative provisions which they adopt inthefield covered bythis
Directive .
Article 14
This Directive isaddressed tothe Member States .
Done at
For the Council
The President