_Director Catherine Cathiard contributed in the ACE Magazine about the proposal published by the EC for a directive on cross-border mobility of companies that includes many constraints. Discover her insights.
On the 25th of April 2018, the European Commission published a Proposal for a Directive amending Directive (EU) 2017/1132 as regards cross-border conversions, mergers and divisions (the ‘proposed Directive’) with the aim of enabling limited liability companies to carry out such operations under harmonised rules within the European Economic Area (‘EEA’).
In order not to suffer the same failure as the proposals to create a SUP and the discussions on a 14th company law directive on the cross-border transfer of company seats, the Commission chose to grant numerous rights and prerogatives to stakeholders (minority shareholders, creditors, employees, co-contractors) and to incorporate barriers to artificial arrangements and tax abuse. After summarising the findings and objectives pursued by the European Commission (I), the main provisions of this text will be described (II), and then an analysis will be made of certain sensitive points, highlighting the consequences for businesses (III).