The Conflict between Disclosure in Securities Markets and the Firm's Need for Confidentiality: Theoretical Framework and Regulatory Analysis

The Interconnection of Company Data – a Way Forward in Development of Freedom of Establishment?

“…In other words, legal solutions should relate cross-border mobility (mergers, transfer of seats, opening of secondary establishments etc.) of national companies to cross-border access to the information stored in various national registries (see Report of the Reflection Group on the (Christensen, Hail, Leuz, 2014;Gilotta, 2010). In addition to that, enhanced transparency arising out of solutions of the aforementioned directive and national regulations that implement it, contribute to development of business-friendly environment and establishment of confidence in the EU Internal Market.…”

“…its founder. In economic theory it is assumed that increase of transparency reduces the "information" asymmetry between investors and increases the market liquidity (Christensen et al, 2014;Gilotta, 2010). It should be taken into consideration that regular capital inflow is a prerequisite of stable business pursuit.…”

“…Embracing digitalisation and creating a modern digital framework for companies, which will bring more transparency and security, has been on the agenda of the European Commission. Availability and transparency of registers on companies' data is the precondition for duly functioning of market relations (Gilotta, 2010;Horak et al, 2011). In fact, increase in cross border transparency is precondition for cross-border mobility and the access to cross-border restructuring (see Report of the Reflection Group on the future of European Company Law, PAGE 129| Journal of Corporate Governance, Insurance, and Risk Management | 2016, VOL.…”

“…1 Brussels,5 April 2011, available at http://ec.europa.eu/internal_market/company/docs/modern/reflectiongroup_report_en.pdf, accessed 22 December 2015). In cases of doubt whether to give an advantage to the principle of voluntary or to the principle of mandatory disclosure of information, the principle of mandatory disclosure of information and their submission should be in advantage in front of potential voluntary disclosure (Gilotta, 2010). This way the aforementioned principle of public dislosure of information, as an assumption that everyone is familiar with the register content, is achieved (Barbić, 2008).…”