It took 30 years before European Member States were able to
agree on the controversial European Company Statute, which is
intended to give companies operating in more than one Member State
the option of being established as a single company under Community
law and so able to operate throughout the EU with one set of rules
and a unified management and reporting system.
The UK's version of the rules comes in the form of the European
Public Limited-Liability Company Regulations 2004, laid before
Parliament on Monday.
The regulations provide for a European public limited liability
company registered in any one of the Member States. It will have a
minimum share capital of €120,000, a separate and distinct legal
personality and will be available to commercial bodies with
operations in more than one Member State. Its use will be entirely
voluntary.
Under the rules, the name of an SE will be preceded or followed
by "SE" and only SEs will be permitted to include the abbreviation
SE in their name. Once an SE has been formed it may transfer its
registered office from one Member State to another without the
winding up of the SE or the creation of a new legal person.
According to the Department of Trade and Industry, the SE might
appeal to UK companies wishing to take over a company from another
Member State, or wishing to establish a joint venture with a
company in another Member State.
The DTI suggests that the new form of company might also appeal
to UK businesses wishing to operate in several Member States
simultaneously.
The final Regulations are not yet available on-line but details
of the DTI's earlier consultation on the European Company, and
responses to it, can be found at: www.dti.gov.uk/cld/published.htm
