The eighth directive on company law may not have the same ring to it as Sarbanes-Oxley but the European Union's proposed legislation is designed to have a similar effect to the sweeping US corporate governance rules. It has also prompted an intense debate between ministers, investors and companies.

The European Commission decided to modernise the EU's corporate law provisions after accounting scandals in the US such as Worldcom and Enron. It was also concerned to avoid a repetition of European governance disasters such as Ahold and Parmalat.