The Gazette 1975

of establishment at meetings in March and June 1975.

The original proposal wrs amended to take account

of the judgments of the Court of Justice and also to

place freedom to provide services within the scope of

the draft directive. In its amended form therefore the

draft concerns the operations of agents and brokers

transacting business either by way of establishment

in other member States or by way of services by brokers

or agents across frontiers. The question of extension of

the scope of the draft Directive to include paid em-

ployees is under consideration. Agreement has been

reached on the board outline of the draft Directive;

the working party is at present engaged in a detailed

discussion of its terms.

Supply of Insurance Services

across

Frontiers

6.28 The Court's judgement in the V a

Binsbergen

case also affected the provisions of the draft Directive

on freedom to supply insurance without the need for

the insurance company to have a branch or agency in

the Member State in question (paragraph 6.14 Fourth

Report). The draft Directive will establish the condit-

ions for the transaction of such Insurance business. It

is receiving final consideration within the Commission

before being transmitted to the Council.

Co-insurance

6.29 On 15 May 1974 the Commission forwarded

to the Council a draft directive (OJ No. C72, 27 June

1974) concerning the liberalisation of co-insurance op-

erations and the co-ordination of laws, regulations and

statutory provisions relating to co-insurance (paragraph

6.13 Fourth Report). An amended proposal which takes

account of the Van Binsbergen judgement and of the

opinions of the European Parliament and the Econ-

omic and Social Committee was forwarded by the

Commission to the Council on 27 May 1975. Co-in-

surance is an operation which enables several insurers

acting in rgreement but without joint and several

liability to insure a risk on the conditions and tariffs

laid down by one of them who is known as the leading

insurer. The draft Directive provides for the particip-

ation of insurance undertakings from different Mem-

ber States in co-insurance. Discussion of the amended

draft irective had been postponed pending considerat-

ion of revised proposals on freedom to supply insurance

services across frontiers, with which co-insurance is

linked.

Direct Life

Assurance

6.30 The General Programme for the abolition of

restrictions on Freedom of Establishment (OJ No. 2, 15

January 1962) provides for the abolition of restrict-

ions in relation to direct life assurance. The former

has been achieved in Directive 7 3 / 2 39 of 24 July 1973

(OJ No. 228, 16 August 1973). On 21 January 1974

the Commission forwarded to the Council a draft Dir-

ective abolishing restrictions on freedom of establish-

ment in the business of direct life assurance. This draft

was amended in November 1974 to take account of

the opinion of the European Parliament and the Econ-

omic and Social Committee and again in February

1975 to take account of the Reyners judgement.

6.31 The draft directive lays down harmonised con-

ditions under which life assurance companies may op-

erate in the Community, including the operations of

branches established in other Member States. At the

meetings held this year to date progress has been made

towards agreement between Member States on the terms

of the Draft Directive.

Winding up of Insurance

Companies

6.32 The Commission has prepared a draft dir-

ective on the winding up of insurance companies. This

is being considered in conjunction with the Commun-

ity draft Convention on Bankruptcy (paragraph 11.38)

Green Card

Insurance

6.33 On 13 December 1974 the Commission ad-

opted Decision 7 5 / 23 whereby Member States will

cease to carry out frontier and internal checks on the

insurance of vehicles normally based in Czechoslovakia,

the German Democratic Republic and Hungary. This

Decision was made pursuant to Directive 7 2 / 66 (OJ

No. LI03, 2 May 1972) concerning the approximation

of the laws of the member States relating to insurance

against civil liability in respect of the use of motor

vehicles. In its Decision the Commission expresses the

hope that these three countries will reciprocate.

6.34 Draft Ministerial Regulations to be made un-

der the European Communities Act 1972 to give effect

to certain requirements of Directive 72 / 166 and De-

cision 7 5 / 23 are being finalised.

Unit Trusts

6.35 The Commission working group dealing with

the co-ordination of national legislation relating to col-

lective investment undertakings including Unit Trusts

is nearing completion of its examination of the draft

Directive (paragraph 6.12 Fourth Report). It is expected

that a proposal Will be forwarded to the Council in the

near future.

Directives on Company Law

10.1 The Council Resolution on Industrial Policy

of 17 December 1973 (OJ No. CI 17, 31 December

1973) provides that the Council will act on

a) a draft Second Directive on the formation of

public limited liability companies and the

maintenance and operation of their capital

(paragraph 10.3 Fourth Report)

(b) a draft Third Directive on mergers between

public limited liability companies (paragraph

10.4 Fourth Report)

(c) a draft Fourth Directive on the annual ac-

counts of limited liability companies (para-

graph 10.5 Fourth Report) and

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