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The rules of the EC´s long-awaited company law package are intended to make it easier for companies to merge, divide or move within the EU, to prevent ‘social dumping’ - or cheap labour; tax evasion and other forms of abuse. It contains two main elements - a mobility chapter relating to cross-border operations, and a digitalisation chapter.
The Commission’s proposals seek to ensure the effective exercise of the freedom of establishment within the internal market, while protecting the rights of tax authorities, employees, creditors and minority shareholders against abuse of legal personality.
Striking the right balance between the freedom of establishment – in enabling mobility of companies by establishing clear rules on cross-border mergers, divisions and conversions, as well as removing unnecessary obstacles - and the protection of stakeholders with safeguards are the main issues at stake.
Věra Jourová, European Commissioner for Justice, Consumers and Gender Equality, welcomed the first positive reactions to the package, and stressed her determination to conclude negotiations on these texts before the end of the current European Parliament’s mandate, and that she relied a lot on the Austrian Presidency to reach that ambitious aim.
Jason Piper, head of Business law at ACCA, who moderated the panel said: 'As a professional body with members advising businesses across the EU on the best economic outcomes for their operations, ACCA is happy to see this package with its blend of practical forward looking steps alongside many important structural legal protections. The key test, though, will be for the proposals to deliver options for business which are more attractive than any of the “unregulated” alternatives.'
Luc Hendrickx, Director of Entreprise policy and External Relations at UEAPME said: 'Due to the exemplary consultation process, the digital tools proposal fulfils nearly all expectations of SMEs in this field. As legal certainty of the verification of the identity is a key condition for the trustworthiness of companies, we insist that the highest European standards for identity checks are set. We call on the European parliament and the Council to adopt the proposal without delay.'
Peter Martschini, representing at the time of the event the still incoming Austrian Presidency of the Council of the EU concluded: 'Expectations were really high when the European Commission unveiled the Company Law Package. Overall, the proposals are very welcome but the right balance between enabling mobility and providing adequate safeguards needs to be our priority. Finding the best use of digital tools in company law to improve the registration process, while at the same time ensuring the quality and reliability of business registers. The Austrian Presidency will work on the proposals in an ambitious way and put all the efforts that are needed in order to move forward.'