The Gazette 1975

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.

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. 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. 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. 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- Supply of Insurance Services across Frontiers 6.28 The Court's judgement in the V a n Co-insurance Direct Life Assurance

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

.213