Corporate Sustainability, Financial Accounting and Share Capital

Quick Facts

Type: Feasibility Study
Adopted: CD 2020/8
Period: February 2020
–24 July 2020


  • Yuri Biondi
  • Colin Haslam
  • Corrado Malberti


This feasibility study focuses on the relation between corporate sustainability of going concerns, extant company law on limited liability, and regulations governing prudential capital maintenance and related company disclosures (including general purpose financial reporting) within the European Union (EU). The feasibility study aims to identify actual techniques and mechanisms that are used to enact unsustainable corporate policies, in order to show their inconsistency with the general principles of share capital maintenance, investor and creditor protections, and broader environmental, social and governance (ESG) considerations.

The feasibility study plan draws upon a green paper prepared by the ELI Business and Financial Law Special Interest Group (ELI SIG BFL) after its first Workshop in Vienna (June 2017) and exchanges during its second Workshop in Lille (January 2019). The overall purpose of the study is to elaborate on and assess the EU legal position and regulations governing corporate sustainability through a prudential approach to share capital management and its maintenance.