| Author (Corporate) | European Commission |
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| Series Details | COM (2018) 241 |
| Publication Date | 25/04/2018 |
| Content Type | Policy-making |
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Summary: Legislative proposal published by the European Commission in April 2018 setting out common procedures at EU level on how a company can move one Member State to another, merge or divide into two or more new entities across borders. Further information: In October 2017, the Court of Justice of the European Union clarified in a judgement (Case C-106/16) that freedom of establishment includes the right for a company to convert itself into a company governed by the law of another Member States, provided the requirements of the Member State of destination for incorporation are satisfied (cross-border conversion). The proposal was adopted in line with the CJEU judgement. The draft law sets out a simplified procedure for companies to move their seat from one Member State to another. The new rules on cross-border conversions and divisions also include specific measures to help national authorities fight against abuse. The Commission adopted the proposal on 25 April 2018 as part of a legislative package reforming EU company law. The European Parliament's plenary session adopted a negotiating position on 17 January 2019. The ambassadors from Member States adopted a general approach on behalf of the Council of the European Union on 30 January. An informal agreement between the co-legislators on a compromise text was reached on 13 March. The Parliament formally endorsed it on 18 April, followed by the Council on 18 November 2019. |
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| Source Link | Link to Main Source https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2018:241:FIN |
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| Subject Categories | Internal Markets, Law |
| Subject Tags | Company | Corporate Law, EU Four Freedoms |
| Keywords | Free Movement of Services |
| International Organisations | European Union [EU] |
