14 European Private Company
| Committee's assessment
| Legally important |
| Committee's decision | Cleared from scrutiny
|
| Document details | Draft Council Regulation on a European private company
|
| Legal base | Article 352 TFEU; unanimity
|
| Department
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us, by letter of 28 January 2015, that the proposal has been withdrawn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14.4 As this proposal has now been withdrawn by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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