Commission welcomes agreement on the cross-border mobility of companies
The European Parliament and the Member States yesterday reached a provisional agreement on new rules to make it easier for companies to merge, divide or move within the Single Market, while providing for strong safeguards.
These rules will allow companies to be more competitive and to easily expand across the EU. They include strong safeguards for employees, minority shareholders and creditors, and ensure that these cross-border operations cannot be misused for fraudulent or abusive purposes.
First Vice-President Frans Timmermans and Commissioner for Justice, Consumers and Gender Equality, Věra Jourová added: "Our EU Single Market offers a lot of opportunities for companies to move and grow. However, so far companies have not been able to make the most of them in practice. The new rules on cross-border mobility will provide clear procedures for companies, which will cut costs and save time. The entrepreneurs will have the choice of where to do business and how to grow or re-organise their businesses. At the same time, the new rules will put in place strong safeguards to protect employees' rights and, for the first time, to prevent operations done for fraudulent or abusive purposes.”
This will make it possible for companies to benefit from a comprehensive set of European rules to move from one Member State to another or to divide into more entities on a cross-border basis.
At the same time, the new rules will allow national authorities to stop a cross-border operation in cases of abusive or fraudulent purposes leading or aiming to lead to the evasion or circumvention of national or EU law, or for criminal purposes.
Employees, especially as regards their information, consultation and participation rights, as well as minority shareholders and creditors will benefit from strong safeguards to protect their rights during cross-border operations. This will substantially improve the protection of these stakeholders, in comparison to the current situation with fragmented rules and lack of legal certainty.
The provisional agreement now has to be formally approved by the European Parliament and the Council of the EU.
The amendment to the Directive relating to certain aspects of company law regarding cross-border conversions, mergers and divisions is part of the company law package proposed by the European Commission in April 2018.
For more information
All information on the Company law package is available here.
The other part of the Company law package on the digitalisation of company law was already agreed upon on 5 February – see statement
Latest News from
Security and defence: Council adopts conclusions18/06/2019 15:25:00
EU foreign and defence ministers yesterday discussed the EU Global Strategy. Following the discussion, the Council adopted conclusions on security and defence in the context of the EU Global Strategy.
EC increases support for the EU's beekeeping sector18/06/2019 14:33:00
The EC will provide €120m to the EU's beekeeping sector over the next 3 years to support its essential role in agriculture & the environment.
Safe drinking water and sanitation: Council approves EU guidelines18/06/2019 12:25:00
2.1bn people lack access to safely managed drinking water services and 4.5bn people lack safely managed sanitation services in the world. Climate change will increasingly affect water availability & access. Across the globe, tensions and conflicts related to access to and use of water continue to rise as the threat of water scarcity spreads.
Chronic hepatitis B infections on the rise since 200818/06/2019 10:38:00
In 2017, the majority (58%) of the almost 27,000 newly reported hepatitis B cases in the EU and European Economic Area were classified as chronic infections. This follows a consistent upward trend in reported chronic hepatitis B cases since 2008.
Eurogroup agrees term sheet on euro-area budgetary instrument and revised ESM treaty18/06/2019 09:25:00
Following the mandate received by EU leaders at the 14 December Euro Summit, the Eurogroup in inclusive format discussed and took decisions on deepening of the Economic and Monetary Union (EMU).
A Europe that protects: good progress on tackling hybrid threats17/06/2019 16:37:00
The EU and Member States have made good progress in tackling hybrid threats through a number of concerted actions in a wide range of sectors to significantly boost capacities, shows the latest report adopted by the EC and the European External Action Service.
European Semester 2019 Spring Package and EU budget 202017/06/2019 16:07:00
The EC has presented the 2019 country-specific recommendations, giving economic policy guidance to all EU Member States for the next 12 to 18 months.
Delegated & implementing acts: EU adapts a significant number of legislative acts to the Lisbon Treaty17/06/2019 15:25:00
The Council has adopted a regulation aligning 64 legislative acts which refer to the so-called 'regulatory procedure with scrutiny' with the Lisbon Treaty.
The EU strengthens rules on home-made explosives and fight against terrorist financing17/06/2019 14:38:00
The Council has adopted two important priority files under the Security Union which strengthen EU rules on explosives precursors and facilitate law-enforcement access to financial information.