The European Company: VOLUME I (Law Practitioner Series)

Cover......Page 1
Half-title......Page 3
Series-title......Page 4
Title......Page 5
Copyright......Page 6
Contents......Page 7
Contributors......Page 11
Preface......Page 13
PART I The European legal framework......Page 15
II The concept of the SE and shortcomings of national laws......Page 17
1 Cross-border mobility under national law......Page 18
2 Summary......Page 20
1 Cross-border mergers......Page 21
2 Transfer of an SE’s registered office......Page 25
4 Summary......Page 27
IV What are you in for when you have an SE?......Page 28
2 Background......Page 30
3 Can employee participation be avoided?......Page 32
VI Conclusion......Page 38
2 Provisions of Community law applicable to the Societas Europaea......Page 39
I Introduction......Page 40
1 Definition......Page 42
2 Legal personality......Page 43
4 Comparison with the European economic interest grouping......Page 44
1 Name and corporate form......Page 46
2 Registered office......Page 47
V Capital......Page 48
1 General remarks......Page 49
A Formation by merger......Page 51
B Formation by merger through acquisition by a parent company holding at least 90% of the share capital of a subsidiary......Page 59
D Formation by incorporation as a holding company......Page 60
E Formation by incorporation as a subsidiary......Page 64
F Formation by conversion......Page 66
A Registration......Page 68
B Publication......Page 69
C Effects of publication......Page 70
5 Subsidiaries......Page 71
VII Articles of an SE......Page 72
A Powers......Page 73
B Organisation......Page 74
D Amendments to the articles of an SE......Page 75
A Powers and functioning......Page 76
B Appointment, removal and liability......Page 77
C Two-tier system......Page 78
D One-tier system......Page 81
X Transfer of registered office......Page 82
XII Conversion into a national company......Page 87
XIV Conclusion......Page 89
3 Employee involvement: rights and obligations......Page 91
I Introduction......Page 92
II Scope and entry into force of the Directive......Page 93
A Holding and subsidiary SEs and SEs formed by conversion......Page 94
B SEs formed by merger......Page 95
2 Appointment or election of members of the SNB......Page 96
A Role......Page 97
B Functioning of the SNB......Page 98
A Content and form of the agreement......Page 99
2 Absence of an agreement within the negotiations period......Page 100
1 Creation of a representative body......Page 101
(i) General principle......Page 102
(ii) Meetings......Page 103
(iii) Information provided to employee representatives......Page 104
A General remarks......Page 105
B Scope......Page 106
(i) SEs formed by merger, holding and subsidiary SEs......Page 107
VI European works council......Page 108
VIII Reservation and confidentiality......Page 109
IX Protection of employee representatives......Page 110
XI Conclusion......Page 111
I Introduction......Page 112
II Tax treatment of an SE......Page 114
III Tax residence of an SE......Page 116
IV The SE and tax treaties......Page 120
1 General remarks......Page 121
2 The Parent-Subsidiary Directive......Page 123
3 The Merger Directive......Page 124
4 The Interest and Royalties Directive......Page 127
PART II Application in each Member State......Page 129
National reports for EU Member States......Page 131
5 Austria......Page 133
I Introduction......Page 134
B Name......Page 135
C Registered office......Page 136
A Formation by merger......Page 138
C Formation of a subsidiary SE......Page 140
D Conversion into an SE......Page 141
5 Acquisition of legal personality......Page 142
B Decision-making process......Page 143
B One-tier system......Page 145
C Two-tier system......Page 146
D Appointment and removal......Page 147
A Provision of information for the creation of an SNB......Page 148
B Composition and appointments......Page 149
D Meetings and decisions......Page 150
F Works council......Page 151
H Employee participation......Page 152
4 Protection of employee representatives and abuse of procedure......Page 153
6 Transitional provisions......Page 154
VII Supervision by the national authorities......Page 155
1 Income tax......Page 156
2 Value added tax and other taxes......Page 158
XI Conclusion......Page 159
6 Belgium......Page 160
II Reasons to opt for an SE......Page 161
(i) Registered office......Page 163
(ii) Transfer of registered office......Page 164
(i) Procedure and publication requirements......Page 166
(ii) Right to object to a company participating in a merger......Page 169
(vi) Avoidance of a merger......Page 170
(ii) Minority shareholders......Page 171
D Conversion into an SE......Page 172
4 Registration and publication......Page 173
A Decision-making process......Page 174
(ii) One-tier system......Page 176
(iii) Two-tier system......Page 177
B Appointment and removal......Page 178
V Employee involvement......Page 179
3 Protection of employee representatives......Page 180
1 Accounting principles......Page 181
2 Auditors......Page 182
3 Insolvency......Page 183
4 Cessation of payments......Page 184
1 Income tax......Page 185
XI Conclusion......Page 187
7 Denmark......Page 188
II Reasons to opt for an SE......Page 189
A Founding parties......Page 190
B Name......Page 191
C Registered Office......Page 192
E Capital......Page 194
A Formation by merger......Page 197
C Formation of a subsidiary SE......Page 199
D Conversion into an SE......Page 200
5 Acquisition of legal personality......Page 201
1 General remarks......Page 202
A Decision-making process......Page 203
B Rights and obligations of shareholders......Page 204
A Two-tier/one-tier system......Page 205
B Appointment and removal......Page 206
C Representation......Page 207
1 Special negotiating body......Page 208
1 Accounting principles......Page 210
2 Auditors......Page 211
1 Winding up......Page 212
3 Insolvency......Page 213
4 Cessation of payments......Page 214
1 Income tax......Page 215
XI Conclusion......Page 216
8 Finland......Page 217
I Introduction......Page 218
A Founding parties......Page 219
B Name......Page 220
(i) Transfer of an SE’s registered office from Finland......Page 221
D Corporate purpose......Page 223
E Capital......Page 224
(a) Preparation and registration of the draft terms of merger......Page 225
(c) Authorisation to execute the merger......Page 227
(ii) SEs to be registered outside Finland......Page 228
(iii) Special rights in connection with the formation of an SE by merger......Page 229
B Formation of a holding SE......Page 230
D Conversion into an SE......Page 231
4 Registration and publication......Page 232
A Decision-making process......Page 233
B Rights and obligations of shareholders......Page 235
A Two-tier system/one-tier system......Page 236
B Appointment and removal......Page 237
D Liability......Page 239
1 Creation of a special negotiating body......Page 240
2 Standard rules on employee participation......Page 241
3 Miscellaneous provisions......Page 242
VI Annual accounts and consolidated accounts......Page 243
2 Auditors......Page 244
1 Winding up......Page 245
C Liquidation procedure......Page 246
A Debt restructuring......Page 247
IX Applicable law......Page 248
B Formation of an SE......Page 249
XI Conclusion......Page 250
9 Germany......Page 251
I Introduction......Page 252
II Reasons to opt for an SE......Page 253
A Founding parties......Page 254
(i) Location......Page 255
(iv) Protection of creditors......Page 256
A Formation by merger......Page 257
(a) Review of the share-exchange ratio......Page 258
(b) Right of appraisal......Page 259
(ii) Protection of creditors......Page 260
B Formation of a holding SE......Page 261
4 Registration and publication......Page 262
2 General meeting......Page 263
(i) Two-tier system......Page 264
(ii) One-tier-system......Page 265
V Employee involvement......Page 267
1 Winding up......Page 269
X Tax treatment......Page 270
(i) Prior to transposition of the Merger Directive and the directive of 17 February 2005......Page 271
(i) Prior to transposition of the Merger Directive and the directive of 17 February 2005......Page 272
(ii) Following transposition of the Merger Directive and the directive of 17 February 2005......Page 273
3 Transfer of registered office and place of effective management......Page 274
5 Subsidiary SE......Page 275
XI Conclusion......Page 276
10 The Netherlands......Page 277
I Introduction......Page 279
(i) General remarks......Page 280
(ii) Transfer of an SE’s registered office abroad......Page 281
(iii) Transfer of an SE’s registered of.ce to the Netherlands......Page 283
(i) Procedure and publication requirements......Page 284
(ii) Opposition on grounds of public interest......Page 286
(vi) Holders of depositary receipts......Page 287
(i) Procedure and publication requirements......Page 288
C Formation of a subsidiary SE......Page 289
3 Acts committed on behalf of an SE in formation......Page 290
A Structure regime......Page 291
B Reasonableness and fairness......Page 292
A Decision-making process......Page 293
B Rights and obligations of shareholders......Page 294
(ii) Two-tier system......Page 295
(i) Two-tier system......Page 296
D Liability......Page 297
2 The Works Councils Act......Page 298
A Special negotiating body......Page 299
B Employee participation......Page 300
C Protection of employee representatives......Page 301
VII Supervision by the national authorities......Page 302
2 Liquidation......Page 303
4 Cessation of payments......Page 304
(i) Tax residency......Page 305
(v) Community directives......Page 306
(a) Transfer abroad (outbound transfer)......Page 307
(b) Transfer to the Netherlands (inbound transfer)......Page 308
(a) Outbound transfer......Page 309
C Transfer of registered office......Page 310
(ii) Parent-Subsidiary Directive......Page 311
XI Conclusion......Page 312
11 Estonia......Page 313
I Introduction......Page 314
B Name......Page 316
(i) Registered office......Page 317
(ii) Transfer......Page 318
E Capital......Page 319
(i) Procedure and publication requirements......Page 320
(iii) Right to object to participation in a merger......Page 321
(iv) Minority shareholders......Page 322
(vi) Acquisition by a company holding 90% or more of the shares in another company......Page 323
(i) Procedure and publication requirements......Page 324
D Conversion into an SE......Page 325
3 Acts committed on behalf of an SE in formation......Page 326
4 Registration and publication......Page 327
5 Acquisition of legal personality......Page 328
A Decision-making process......Page 329
(ii) One-tier system......Page 331
(i) One-tier system......Page 333
D Liability......Page 334
1 Accounting principles......Page 336
1 Winding up......Page 338
3 Insolvency......Page 339
1 Income tax......Page 342
XI Conclusion......Page 343
12 Hungary......Page 345
I Introduction......Page 346
(i) Registered office......Page 347
(a) Protection of minority shareholders......Page 348
(c) Accounting......Page 349
E Capital......Page 350
F Registration and publication......Page 351
A Decision-making process......Page 352
(i) One-tier system......Page 353
(ii) Two-tier system......Page 354
1 Special negotiating body......Page 355
2 Auditors......Page 356
1 Income tax (corporate tax and dividend withholding tax)......Page 357
2 Value added tax......Page 358
X Conclusion......Page 359
13 Lithuania......Page 360
2 Founding parties......Page 361
5 Capital......Page 362
A Formation by merger......Page 363
D Conversion into an SE......Page 364
8 Registration and publication; acquisition of legal personality......Page 365
2 General meeting......Page 366
B Rights and obligations of shareholders......Page 367
A Two-tier system/one-tier system......Page 368
C Representation......Page 369
IV Employee involvement......Page 370
1 Accounting principles......Page 372
VI Supervision by the national authorities......Page 373
2 Reorganisation......Page 374
3 Liquidation......Page 375
VIII Applicable law......Page 376
2 Corporate tax......Page 377
4 VAT......Page 378
6 Tax framework for the formation of an SE......Page 379
10 Establishment of a subsidiary SE......Page 380
X Conclusion......Page 381
14 Poland......Page 383
I Introduction......Page 384
II Reasons to opt for an SE......Page 385
C Registered office......Page 386
E Capital......Page 387
A Formation by merger......Page 388
B Formation of a holding SE......Page 389
D Conversion into an SE......Page 390
5 Acquisition of legal personality......Page 391
A Decision-making process......Page 392
B Rights and obligations of shareholders......Page 393
(ii) One-tier system......Page 394
(iii) Two-tier system......Page 397
D Liability......Page 398
(i) Appointment of SNB members......Page 399
3 Protection of employee representatives......Page 400
1 Accounting principles......Page 401
VII Supervision by the national authorities......Page 402
2 Liquidation......Page 403
3 Insolvency......Page 404
1 Income tax......Page 405
2 Value added tax......Page 409
XI Conclusion......Page 410
15 Slovak Republic......Page 411
II Reasons to opt for an SE......Page 412
A Founding parties......Page 413
C Registered office......Page 414
(ii) Protection of creditors......Page 415
E Capital......Page 416
A Formation by merger......Page 417
(i) Protection of minority shareholders......Page 418
(ii) Protection of creditors......Page 419
C Formation of a subsidiary SE......Page 420
D Conversion into an SE......Page 421
4 Registration and publication......Page 422
1 General remarks......Page 423
A Decision-making process......Page 424
A Two-tier system......Page 425
B One-tier system......Page 426
E Liability......Page 428
V Employee involvement......Page 429
1 Accounting principles......Page 430
2 Auditors......Page 431
1 Winding up......Page 432
2 Liquidation......Page 433
3 Insolvency......Page 434
4 Cessation of payments......Page 435
2 Value added tax......Page 436
XI Conclusion......Page 437
16 Sweden......Page 439
I Introduction......Page 440
A Founding parties......Page 441
(i) General remarks......Page 442
(ii) Transfer of registered office......Page 443
(i) Procedure and publication requirements......Page 446
(v) Acquisition of a wholly owned subsidiary......Page 450
(i) Procedure and publication requirements......Page 451
D Conversion into an SE......Page 452
4 Registration and publication......Page 453
1 General remarks......Page 454
A Decision-making process......Page 455
(ii) One-tier system......Page 456
(iii) Two-tier system......Page 457
C Managing director......Page 458
V Employee involvement......Page 459
2 Standard rules......Page 460
4 Protection of employee representatives; jurisdiction; confidentiality; damages......Page 461
1 Accounting principles......Page 462
VII Supervision by the national authorities......Page 463
2 Insolvency......Page 464
1 Income tax......Page 465
A Formation by merger......Page 466
4 Other taxes......Page 467
XI Conclusion......Page 468
17 United Kingdom......Page 470
I Introduction......Page 471
(i) Registered office......Page 472
(ii) Transfer......Page 473
A General remarks......Page 475
B Formation by merger......Page 476
C Formation of a holding SE......Page 478
E Conversion into an SE......Page 479
3 Acts committed on behalf of an SE in formation......Page 480
1 General remarks......Page 481
(i) Decision-making process......Page 482
(i) General remarks......Page 483
(ii) Supervisory organ: the two-tier system......Page 484
B Appointment and removal......Page 485
1 Special negotiating body (‘SNB’)......Page 486
4 Complaints procedure......Page 487
A General remarks......Page 488
C Consolidated accounts......Page 489
2 Auditors......Page 490
4 Administrative receivership......Page 491
B Involuntary liquidation......Page 492
2 Income tax......Page 493
4 Other taxes......Page 494
IX Recent developments regarding the implementation of Community Directives in the UK......Page 495
X Conclusion......Page 496
National reports for EEA Member States......Page 499
18 Iceland......Page 501
I Introduction......Page 502
A Founding parties......Page 503
C Registered office......Page 504
A Formation by merger......Page 506
4 Registration and publication......Page 507
A Decision-making process......Page 508
B Rights and obligations of shareholders......Page 509
A Two-tier system/one-tier system......Page 511
V Employee involvement......Page 512
VII Supervision by the national authorities......Page 513
2 Winding up......Page 514
1 General remarks......Page 515
4 Other taxes......Page 516
XI Conclusion......Page 517
PART III Annexes......Page 519
Annex Ia......Page 521
Annex Ib Public limited-liability companies referred to in Article 2(1) of the Regulation......Page 541
Annex Ic Public and private limited-liability companies referred to in Article 2(2) of the Regulation......Page 544
Annex II......Page 547
Belgium......Page 561
Hungary......Page 562
Norway......Page 563
United Kingdom......Page 564
Index......Page 565