The new company-scope tests

What is the requirement, in plain English?

The company-scope tests are raised. In the first limb a company falls in where it averaged over 5 000 employees and its worldwide turnover passed EUR 1 500 000 000 in the most recent year with statements; the franchising or licensing limb uses royalties above EUR 75 000 000 and net worldwide turnover above EUR 275 000 000. The second limb applies the same style of tests to a company whose turnover in the Union passed EUR 1 500 000 000 in the year before the last financial year, with the franchising figures measured in the Union.

What evidence does a regulator or an auditor ask for?

The due diligence scope note with the employee and turnover figures for both limbs and the royalty figures, each on the accounting basis named.

Which dates matter?

• Transposition of Article 4 (due diligence amendments): 26 July 2028

The transposition deadline for Articles 1 to 3 of the amending directive is 19 March 2027 (Article 5). For Article 4 it is 26 July 2028, applied from 26 July 2029.

What does it cross-reference?

• Article 4(1) of this amending Directive

How do I check a draft against this provision?

Paste your draft into the reading. The reading returns, per provision, whether a phrase specific to this requirement appears in your own words, quoted, with the article cited here. Where a line reaches nothing it reads no mapping identified.

Not legal advice; does not certify. Every field on this page carries its own source pointer, and the record is replayed by the pages, the check and the export from one reviewed record.