European Company Statute

The European Company Statute (the "Statute") creates a new form of company ("societas europaea" or "SE"), available to commercial organisations with operations in more than one member state. When the concept was first aired over 40 years ago, the objective was to develop a single form of company which would be subject to a European Community-wide company law code, rather than the laws of any single member state. This proved difficult to attain, due to disagreement between member states both as to the company laws which would apply to the SE, and the approach to employee participation. The final product of negotiations, which concluded in 2001, is therefore a "European" public company that will be registered in one member state, will be governed by the Statute in certain key areas (eg minimum capital, management structure, shareholder meetings) but otherwise subject to national laws for public companies.