Europe: The European Company Statute

The European Commission has published a report on the European Company Statute. The report contains an overview of the factors which influence the setting up a European Company (SE), and the problems encountered, as well as highlighting trends on the distribution of SEs throughout the EU. 

The European Company Statute ("SE Regulation") was adopted on 8 October 2001. It offered the possibility to create a new legal form called a European Company, also referred to as an SE after its Latin name Societas Europaea. The objectives of the SE Regulation, according to its recitals, were to, inter alia,

·         Remove obstacles to the creation of groups of companies from different Member States,

·         Allow companies with a European dimension to combine, plan and carry out the reorganisation of their business on a Community scale and to transfer their registered office to another Member State while ensuring adequate protection of the interests of minority shareholders and third parties,

·         To ensure as far as possible that the economic unit and the legal unit of business in the Community coincide,

·         Permit the creation and management of companies with a European dimension, free from the obstacles arising from the disparity and the limited territorial application of national company law and

·         To allow companies with a European dimension to adapt their organisational structure, and to choose a suitable system of corporate governance ensuring efficient management, proper supervision and the maintaining of the rights of employees to involvement.

For complete report see here.