Volume 29 (2018) / Issue 5
Eliana Colarusso, 'Deconstruction and Reconstruction of a Relationship between the EU Precautionary Principle and Forward-Looking Information' (2018) 29 European Business Law Review, Issue 5, pp. 791–812
This paper analyses the possible links between the precautionary principle – as interpreted by the European Commission and the European Court of Justice and broadly employed for health and environmental protection – and the listed companies duties of risk reporting and forward-looking information disclosure. Taking into consideration that the IAS/IFRS and the European frameworks are already strewn with rules concerning forward-looking information, the paper proposes to apply the precautionary principle to this information, analysing the possible issues arising from the proposal and the related solutions. Positive effects of a disclosure regime based on the precautionary principle emerge: an increase in transparency in the financial markets, a unique interpretation criterion in the doubtful cases, incentives to careful risk monitoring and timely intervention also in situations of persistent scientific uncertainties and encouragement of effective public and private enforcement.
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