EU company law under revision
The European Commission has initiated a revision of EU company law, and in a consultation asked for input. Last week NFU submitted a reply. One of our main points is the need for a level playing field. There should be one set of rules that covers any type of action and any type of company. To have separate rules for SE Companies, companies resulting from cross-border mergers and the European Private Companies that might come, makes the assessment of a restructuring process harder and less foreseeable for every part involved.
NFU has also pointed out that if a company is transformed to or from a European company structure, the best available rules on employee protection and involvement should apply. If, for example, a company transfers its seat to a country where the rights are worse for the employees, the pre-existing rights must apply.
If a company, however, transfers to a country where employees’ rights are better looked after, the “new and better” rights must apply. A “country of origin” principle would open up for abuse. NFU has stressed that it must be ensured that the European company rules does not create loopholes to sidestep national legislation.
Read the NFU reply to the European Commission consultation on company law here.