Documents considered by the Committee on 4 February 2015 - European Scrutiny Contents

14 European Private Company

Committee's assessment Legally important
Committee's decisionCleared from scrutiny
Document detailsDraft Council Regulation on a European private company
Legal baseArticle 352 TFEU; unanimity

Document numbers

Business, Innovation and Skills

(32863), 9713/11, —

Summary and Committee's conclusions

14.1 This proposal for a European Private Company (or SPE, standing for Societas Privata Europaea) was intended to complement the existing European Company Statute. It would allow companies to be formed following the same company law provisions across Member States. It aimed to reduce the compliance costs for the creation and operation of business which arise from the disparities between national rules both on formation and on the internal operation of companies. The SPE would have been optional for businesses.

14.2 It was first proposed in 2008. In July 2011 the then Hungarian Presidency tabled a compromise text which we retained under scrutiny. Further details are set out in our Report of 19 July 2011. The proposal gave rise to significant issues relating to the level of capital needed to establish an SPE, determining the seat (and therefore the applicable law) of an SPE, and employee participation.

14.3 The Minister for Employment Relations and Consumer Affairs and Minister for Women and Equalities (Jo Swinson) informs us, by letter of 28 January 2015, that the proposal has been withdrawn by the Commission. She also reminds us that the current proposal on single member private limited companies, which is reported at chapter 3, has similar objectives.

14.4 As this proposal has now been withdrawn by the Commission, we formally clear it from scrutiny.

Full details of the documents: Draft Council Regulation on a European private company: (32863), 9713/11, —.

Previous Committee Reports

Thirty-eighth Report HC 428-xxxiv (2010-12) chapter 2 (19 July 2011); see also in respect of this proposal (29790), 11252/08: Thirty-fourth Report HC 16-xxx (2007-08), chapter 10 (8 October 2008).

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Prepared 13 February 2015