General corporate matters: European Parliament amends late payment directive

United Kingdom

After having tabled several amendments, the European Parliament has adopted the EU's draft directive on late payments. These include a clearer definition of damage that may be claimed; borrowing or bank overdraft costs for the creditor; recovery related administrative costs, cost incurred by third parties, and recovery costs resulting from legal proceedings. It also believes the 21 day payment period should commence when the invoice is delivered rather than on the date of the invoice.

The Parliament has also altered the due dates for public procurement contracts from the 60 days proposed by the Commission. If the contract is not over ECU 100,000 the period is reduced to 45 days. Over this sum the maximum period is 60 days.