THE HAGUE, 02/11/05 - Shareholders are to be given more powers against bourse-listed companies with deficient annual accounts. From next year, investors will be able to take a complaint to court immediately. Currently, they still have to issue a summons against the company, a procedure that takes over two years.

The finance ministry yesterday confirmed a report in Het Financieele Dagblad. The powers will be enshrined in the new Supervision of Financial Reporting Act. The act also widens the powers of the Financial Markets Authority (AFM).

Shareholders will be given the option of requesting the Companies' Chamber to launch an independent investigation of the contested annual accounts. This court will subsequently decide itself whether it will take up the complaint. The costs of the investigation will be born by the company in question.

Individual investors and lobby groups such as the Company Information Investigation Foundation (SOBI) and the shareholders association are expected to gratefully avail of the new law.

Investors will also be given longer to take action against faulty annual accounts. Currently, they have to take action within two months of the shareholders meeting; this will be increased to 12 months.

As well as shareholders, the AFM will have more scope to check up on annual accounts. The AFM can request further information from the company and go to the Companies Chamber to demand a revision of the annual accounts.