Friday, February 3, 2012

The European Parliament wants to regulate the mobility of firms

Parliament wishes to facilitate and regulate the transfer of headquarters limited liability companies within the European Union.

The legislation requested should aim to guarantee limited liability companies' right to establish themselves in any Member State, provided that they address all the employment and social implications, any legal uncertainty, and the costs generated by the move.

By approving the resolution drafted by Evelyn Regner (S&D, AT), Parliament proposes that a company migrating to another EU country should be subject to the same rules as national ones, but the transfer should in no way circumvent social and fiscal laws.

Transparency

The company management, before deciding on a transfer, should be obliged to firstly consult employees' representatives and then table a report to explain the consequences of the move for shareholders, creditors and employees.

Shareholders' and employees' participation

Employees' participation rights would have to be preserved after the transfer, MEPs say. The approved text proposes that as a matter of principle, the rules of the host Member State should apply unless they do not provide for the same level of participation as in the original country.

The general meeting of shareholders should approve the transfer proposal submitted by the management. In addition, MEPs propose to let Member States introduce national legislation to ensure appropriate protection for minority shareholders who oppose a transfer, for example, by giving them the right to move out of the company.

Background

In 2007, the Commission, after having conducted an impact assessment on this matter, decided not to act. This legislative initiative has been tabled under Article 225 of the Treaty on the Functioning of the EU and needed a qualified majority to be approved.

Source European Parliament - Press room

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