EU report gives advice after Enron

The group's mandate was extended in April to consider the lessons from the Enron affair and other accounting scandals in the US.

The group has drawn up recommendations on the roles of non-executive and supervisory directors; management remuneration; the responsibility of management for financial statements; and auditing practices.

The European Commission is expected to issue a policy document next year.

The group's report includes a recommendation that member states should not allow the formation of holding companies if the assets of the businesses they own are in another country, “unless the economic value of such admission is clearly demonstrated.”