Under EU law, companies cannot pay dividends to their shareholders unless they are paid out of realised profits. Ascertaining the amount of realised profits is sometimes complex and onerous and establishes a rigid link between an ability to pay dividends and a company's statutory accounts. This may be unsuitable as accounting standards are not primarily framed to ensure that financial statements are suitable for justifying distributions.

Whilst it is clearly necessary that there is protection for the interests of creditors, the current requirements are arguably over complex and may not in any event provide adequate safeguards. There have been a number of calls for reform, which would replace the current regime with a solvency approach which it is sometimes argued would be simpler, more flexible and more effective.

In order to provide an opportunity to learn of progress and to express views the ASB is hosting a public meeting in London on 26 February. The meeting will receive presentations from:

• Paolo Santella, a National Expert at the European Commission, DG Internal Market
• Erich Kandler, Chairman of the FEE Company Law and Corporate Governance Working Party, and Partner, Deloitte Austria; and
• Ken Lever, Chairman of the Financial Reporting Committee of The Hundred Group of Finance Directors.

Further details of the public meeting can be obtained via the ASB website at: http://www.frc.org.uk/asb/registerevent.cfm?event_id=5 All places are now reserved.