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The EUs 14th Company Directive - Research Paper Example

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The paper "The EU’s 14th Company Directive" states that economic transfer of corporate citizens across borders among member states, a step by step guideline such as that provided for in the proposals for the 14th Company Law Directive is not only desirable but entirely necessary…
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The EUs 14th Company Directive
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Download file to see previous pages Ultimately, the transferring company is required to simultaneously lose legal status in its home state and obtain legal personality in the host state so as to circumvent the difficulties that are associated with having dual legal personality in two member states.3
As a result of these public consultation exercises, the High-Level Group of Company Law Experts issued a final report on November 2002 in which it recommended a proposal for Directives that would facilitate cross-border mergers and the cross-border transfer of company seats within the EU.4 In 2002, the European Commission responded by announcing an Action Plan essentially undertaking to formulate and endorse proposals for such Directives.5Ultimately, the EU’s 14th Company Law Directive was formulated to deal with the cross-border transfer of company’s registered offices and the Company Law 10th Directive was formulated to facilitate trans-border mergers.6
On 26 February 2004, the EU coordinated an Internet consultation with respect to its recommended proposals for a Directive regulating the cross-border transfer of companies with limited liability within the EU. The proposal included 10 key recommendations for inclusion in Article 44 (1) and (2)(g) of the EC Treaty.7 The proposals are summarized as follows:
1. The primary goal of the proposed Directive would be to facilitate the cross-border transfer of a registered office of a limited liability company on the basis of “freedom of establishment.”8 This would be possible in all cases where a company is already formed under the relevant law of any EU member state and “special provisions” would be provided for companies that conduct “regulated activities.” ...Download file to see next pagesRead More
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