Company Law

The European Action Plan on Modernising Company Law and Enhancing Corporate Governance must establish a more efficient, cost-effective, and flexible legal framework for companies to improve their competitiveness at EU and global levels.

EUROCHAMBRES calls the European Institutions to consider a minimum regulation approach when it comes to Modernising Company Law and Enhancing Corporate Governance. Indeed, national law and soft-law are already providing relevant solutions in most of the cases.

We believe that any new arrangements out of the Action Plan must establish a more efficient, cost-effective, and flexible legal framework for companies to improve their competitiveness at EU and global levels.

We nevertheless stress the interest in developing a Directive on the transfer of registered office and to progress on a European Private Company Statute.

European Private Company Statute

SMEs are more and more frequently seen working across the internal market and so it is important that they can develop and thus contribute to economic growth. Having a common and truly European legal structure based on contractual freedom would allow them to organise themselves into European groups or networks of companies and to form joint European enterprises.

This is the aim of the draft European Private Company (EPC) statute, an idea from the business community supported by EUROCHAMBRES and, since 2002, the European Economic and Social Committee.

The EPC would be a limited liability company with excellent organisational flexibility, open to both natural and legal persons and adaptable to the needs of business leaders, which fits perfectly into the Better Regulation programme. The future entry into force of the provisions of the Services Directive, which aims to facilitate supply of services by SMEs in the European Union, is an additional argument in favour of this European legal structure.

As for image, the EPC will offer a truly European label, bringing public awareness, competitiveness and dynamism, an asset clearly highlighted by a 2005 feasibility study carried out by the European Commission. Such a label is a significant competitive advantage, particularly for companies from new Member States and, in general, for all those looking for a strong European identity.

On 15 May 2007, EUROCHAMBRES organised a Symposium on the EPC (Program available in the MediaKit Section). This event well attended turned to have a major impact on the evolution of this dossier. Pressed in turn by the European Parliament, Commissioner McCreevy announced on 3 October 2007 to move ahead with the creation of the EPC. This is a success for the Chambers which will continue to follow up the dossier very closely.

“One share one vote” principle

Commissioner McCreevy announced giving up the fight for a legislative action on the principle of one-share, one vote”. This is another success for European Chambers who took part in the debate. European Chambers advocated the right for the company owners to freely agree on any type of share system that best suits the needs of their company, and the equal right for the investors to be free in their investment decisions