10. LEGAL INFORMATION 10.1. GENERAL INFORMATION ON THE COMPANY 10.1.3. Applicable legislation 10.1.3.1. Statutory two-tier board system The company is incorporated under Dutch law and is governed by Book II of the Dutch civil code. Articles 152 to 164 inclusive of Book II of the Dutch Civil Code referred to as the structure regime applies to the company. Under this system, companies are required to adopt a two-tier system of corporate governance, consisting of a Management Board and a Supervisory Board. The statutory two-tier board system grants specific powers to the Supervisory Board, the most important of which are: (i) the appointment of members of the Supervisory Board, subject to the right of recommendation and objection granted to the Annual General Meetings and the works council and the Managing Board's right of recommendation; (ii) the appointment and dismissal of the members of the Managing Board; (iii) the adoption of the annual financial statements; and (iv) the prior approval of certain decisions of the Managing Board. Euronext's current statutory structure regime is laid down in the company's articles of association based on Chapter 4 Part 6, of Book II of The Dutch Civil Code the structure regime includes a two-tier board system and was adopted at the time on a voluntary basis. In anticipation of proposed changes in the law on the structure regime, the Supervisory Board has been considering the possibility of abolishing the provisions of the structure regime at the level of Euronext N.V., and the implications thereof for the corporate governance of Euronext N.V. as well as for Euronext Amsterdam N.V.. However, in the context of the adoption of the Dutch corporate governance code, as drafted by a committee chaired by Mr Morris Tabaksblat, questions have been raised from various sides as to whether the rules of Dutch law on the structure regime or in any event, the mandatory application there of, should not be abolished altogether or alternatively, whether the proposed changes as contained in a bill currently pending before Parliament in the Netherlands should not be revised in a number of respects. Given the uncertainty about the outcome of this debate, the Supervisory Board has come to the conclusion that it would be premature to propose changes in the articles of association of Euronext N.V. as long as it is not known to what extent and in what way the law will be changed. The Supervisory Board continues to closely follow the developments and, assuming that more certainty about the expected changes in the law will become available in the course of 2004, intends to submit appropriate changes in the articles of association of Euronext N.V. to the Annual General Meeting of Shareholders to be held in 2005. 10.1.3.2. Works council In 2002, a European Works Council was set up. The European Works Council has members from all Euronext locations. In addition, local works councils are active at Euronext Paris, Euronext Brussels and Euronext Amsterdam.