Cross-Border Mergers in Europe (Law Practitioner Series) (Volume 1)

Half-title......Page 3
Series-title......Page 4
Title......Page 5
Copyright......Page 6
Contents......Page 7
Contributors......Page 10
Preface......Page 11
Part I: EC rules on cross-border mergers......Page 13
1 Community rules applicable to cross-border mergers......Page 15
2 History......Page 16
1 General......Page 17
2 Excluded companies and mergers......Page 19
1 Definition......Page 21
2 Conditions......Page 22
V Consequences of a merger......Page 23
1 General remarks......Page 24
2 Common draft terms of cross-border merger......Page 25
4 Report of the independent expert(s)......Page 27
5 Shareholder approval......Page 28
7 Pre-merger certificate and scrutiny of the legality of a cross-border merger......Page 30
8 No prospectus obligation......Page 32
9 Entry into force, registration and publication......Page 33
1 Merger with a wholly owned subsidiary or subsidiaries......Page 35
VIII Employee participation......Page 36
IX Protection of creditors, debenture holders and the holders of non-equity securities......Page 38
X Conclusion......Page 39
I Introduction......Page 41
II Geographic scope and entry into force......Page 42
IV Determination of the applicable participation rules in the event of a cross-border merger......Page 43
V Procedure to determine employee participation rights......Page 44
B Creation of an SNB......Page 45
C Role and functioning of the SNB......Page 48
A Conclusion of an agreement on employee participation......Page 49
B Absence of an agreement within the negotiations period......Page 50
A Scope......Page 51
B Content......Page 52
VII Reservation and confidentiality......Page 53
IX Protection of employee representatives......Page 54
X Acceptable legal form and subsequent domestic mergers......Page 55
1 Purpose......Page 56
2 History......Page 57
III Scope......Page 59
1 Transfer of assets and liabilities......Page 60
2 Transfer of reserves and provisions......Page 62
4 Cancellation of shares......Page 63
6 Transfer of a permanent establishment......Page 64
7 Exclusions......Page 65
4 Scope and limitations of the Cross-border Merger Directive......Page 66
1 Cross-border mergers......Page 69
2 Cross-border transfer of real seat......Page 72
3 Cross-border transfer of registered office......Page 81
4 Cross-border divisions......Page 82
II Which cross-border operations can companies achieve thanks 
to the Cross-border Merger Directive?......Page 84
III What are the limitations under the Cross-border Merger Directive?......Page 85
Part II: Application in each Member State National reports for the EU Member States......Page 91
5 Austria......Page 93
II Scope of the new rules......Page 94
IV Consequences of the merger under national law......Page 95
2 Common draft terms of cross-border merger (Verschmelzungsplan.)......Page 96
3 Management report......Page 98
4 Report of the independent expert (auditor’s report)......Page 99
5 Report of the supervisory board......Page 100
A Information requirements prior to the shareholders’ meeting(s)......Page 101
B Shareholders’ approval......Page 103
A The company resulting from the cross-border merger is not an Austrian company (pre-merger certificate)......Page 105
B The company resulting from the cross-border merger is an Austrian company (effects of the decision)......Page 106
1 Right to cash compensation (exit right)......Page 108
2 Right to petition for the share-exchange ratio to be scrutinised and amended......Page 109
VII Creditor protection......Page 110
1 Employee participation in companies established in Austria resulting from a cross-border merger......Page 111
2 Special negotiation body (‘SNB’)......Page 112
3 Protection of employee representatives......Page 113
IX Tax treatment......Page 114
I Introduction......Page 116
II Scope of the new rules......Page 117
IV Legal consequences and enforceability of a cross-border merger......Page 118
1 Draft terms of cross-border merger......Page 119
3 Auditor’s report......Page 120
A Information for shareholders......Page 121
B Shareholder approval......Page 122
5 Pre-merger certificate......Page 124
VI Minority shareholders......Page 125
2 Special negotiating body (‘SNB’)......Page 126
IX Tax treatment......Page 127
I Introduction......Page 130
III Cash payment......Page 131
IV Legal consequences and enforceability of a cross-border merger......Page 132
1 Draft terms of cross-border merger......Page 133
3 Auditor’s report......Page 134
B Shareholder approval......Page 136
6 Effects of the decision......Page 137
VII Protection of creditors......Page 139
1 Employee participation in companies established in Bulgaria resulting from a cross-border merger......Page 140
2 Special negotiating body (‘SNB’)......Page 141
IX Tax treatment......Page 143
I Introduction......Page 145
III Cash payment......Page 146
IV Legal consequences and enforceability of a cross-border merger......Page 147
1 Draft terms of cross-border merger......Page 148
3 Auditor’s report......Page 149
B  Shareholder approval......Page 151
5 Pre-merger certificate......Page 152
6 Effects of the decision......Page 153
VI Minority shareholders......Page 154
1 Employee participation in companies established in Cyprus resulting from a cross-border merger......Page 155
3 Protection of employee representatives......Page 156
IX Tax treatment......Page 157
I Introduction......Page 159
II Scope of the new rules......Page 160
III Cash payment......Page 162
IV Legal consequences and enforceability of a cross-border merger......Page 163
1 Draft terms of cross-border merger......Page 164
2 Management report......Page 165
3 Independent expert......Page 166
A  Information for shareholders......Page 168
B  Shareholders’ approval......Page 169
5 Pre-merger certificate......Page 171
VI Minority shareholders......Page 172
VII Protection of creditors......Page 174
1 Employee participation in companies resulting from the cross-border merger established in the Czech Republic......Page 176
2 Special negotiating body (‘SNB’)......Page 177
3 Protection of employee representatives......Page 178
IX Tax treatment......Page 179
10 Denmark......Page 181
IV Legal consequences and enforceability of a cross-border merger......Page 182
1 Draft terms of cross-border merger......Page 183
3 Auditor’s report......Page 185
B Shareholder approval......Page 187
6 Filing of decision to merge......Page 188
VI Minority shareholders......Page 189
1 Existing rules on employee participation......Page 190
B The ‘short-cut procedure’......Page 191
C The negotiation procedure......Page 192
A	Covered cross-border mergers......Page 194
C	Tax treatment of the shareholders of the merged companies......Page 195
I Introduction......Page 196
II Scope of the new rules......Page 197
IV Legal consequences of the merger and enforceability of a cross-border merger......Page 198
2 Management report......Page 199
3 Auditor’s report......Page 200
A  Information for shareholders......Page 201
B  Shareholder approval......Page 202
5 Pre-merger certificate......Page 203
VI Minority shareholders......Page 204
VII Protection of creditors......Page 205
2 Special negotiating body (‘SNB’)......Page 206
IX Tax treatment......Page 207
I Introduction......Page 209
III Cash payment......Page 210
1 Draft terms of cross-border merger......Page 211
2 Management report......Page 212
A  Information of shareholders......Page 213
B  Shareholder approval......Page 214
5 Pre-merger certificate......Page 215
VI Minority shareholders......Page 216
VIII Employee participation......Page 217
2 Special negotiating body (‘SNB’)......Page 218
IX Tax treatment......Page 219
13 Hungary......Page 221
II Scope of the new rules......Page 222
IV Legal consequences and enforceability of a cross-border merger under national law......Page 223
1 Draft terms of cross-border merger......Page 224
3 Auditor’s report......Page 225
4 General meeting of shareholders......Page 226
5 Pre-merger certificate......Page 227
VI Minority shareholders......Page 229
1 Employee participation in companies established in Hungary resulting from a cross-border merger......Page 230
2 Special negotiating body (‘SNB’)......Page 232
1 Introductory thoughts on mergers......Page 233
B Revaluation......Page 234
3 Preferential merger......Page 235
C Tax implications for shareholders......Page 236
4 Other tax implications......Page 237
14 The Netherlands......Page 238
1 Implementation......Page 239
1 Dutch entities that are allowed to enter into a cross-border merger......Page 240
4 Triangular mergers......Page 241
1 Same legal form for all merging entities......Page 242
3 General legal effects......Page 243
6 Special rights vis-à-vis a disappearing entity......Page 244
8 Accounting effects......Page 245
1 Merger proposal......Page 246
2 Explanatory memorandum......Page 247
4 Auditor’s statements and report......Page 248
5 Annual accounts and interim accounts......Page 249
6 Depositing of merger documents......Page 250
7 Announcement of the merger......Page 251
9 Resolution to enter into the merger......Page 252
11 Effectiveness of the merger......Page 254
12 Registration of the merger......Page 256
VI Minority shareholders......Page 257
VII Protection of creditors......Page 258
1 General......Page 259
2 Structure regime......Page 260
3 Obligation to negotiate on an EPS......Page 261
5 The special negotiating body......Page 262
6 Negotiation procedure......Page 263
7 Standard rules......Page 264
IX Tax treatment......Page 265
1 Taxation at the level of the merging entities......Page 266
2 Taxation at the level of the shareholders......Page 267
X Conclusion......Page 268
I Introduction......Page 269
III Cash payment......Page 270
1 Draft terms of cross-border merger......Page 271
3 Auditor’s report......Page 272
B  Shareholder approval......Page 273
6 Effects of the decision......Page 274
VII Protection of creditors......Page 275
1 Employee participation in companies established in Poland and resulting from a cross-border merger......Page 276
IX Tax treatment......Page 277
I Introduction......Page 279
II Scope of the new rules......Page 280
IV Legal consequences of the merger and enforceability of a cross-border merger......Page 281
1 Draft terms of cross-border merger......Page 282
2 Management report......Page 284
3 Independent expert’s report......Page 285
4 General meeting of shareholders......Page 286
5 Pre-merger certificate......Page 287
6 Effects of the decision......Page 288
1 Adequate cash payment......Page 289
2 Repurchase of shares......Page 291
1 Employee participation in companies established in Slovakia resulting from a cross-border merger......Page 293
2 Special negotiating body (‘SNB’)......Page 294
IX Tax treatment......Page 298
I Introduction......Page 300
II Scope of the new rules......Page 301
III Cash payment......Page 302
IV Legal consequences and enforceability of a cross-border merger......Page 303
2 Management report......Page 304
3 Auditor’s report......Page 305
A Convening meetings when they are needed......Page 306
B Information for shareholders, employees and the public......Page 307
C Shareholder and creditor approval......Page 308
6 Effects of the decision......Page 309
VI Minority shareholders......Page 310
VII Protection of creditors......Page 311
1 Employee participation in companies established in the UK resulting from a cross-border merger......Page 312
3 Protection of employee representatives......Page 313
IX Tax treatment......Page 314
Part III: Application in the EEA Member States......Page 315
I Introduction......Page 317
II Scope of the new rules......Page 319
IV Legal consequences of the merger and enforceability of a cross-border merger......Page 321
1 Draft terms of cross-border merger......Page 323
2 Management report......Page 324
3 Auditor’s report......Page 325
4 General meeting of shareholders......Page 326
5 Pre-merger certificate......Page 327
6 Effects of the decision......Page 328
VI Minority shareholders......Page 330
VIII Employee participation......Page 331
1 Employee participation in companies established in Norway resulting from a cross-border merger......Page 332
2 Special negotiating body (‘SNB’)......Page 333
IX Tax treatment......Page 335
Part IV: Annexes......Page 337
Annex I......Page 339
Definitions......Page 342
Common draft terms of cross-border mergers......Page 343
Approval by the general meeting......Page 344
Consequences of the cross-border merger......Page 345
Employee participation......Page 346
Validity......Page 347
Addressees......Page 348
Annex II......Page 349
Article 2......Page 352
Article 3......Page 353
Article 4......Page 354
Article 9......Page 355
Czech Republic......Page 358
Slovak Republic......Page 359
Norway......Page 360
Index......Page 361