The Improvement of Legal Framework of the Limited Liability Company Provided by International Uniform Law

• Author: Charlotte Ene - Ileana Voica
• Profession: Law Department, Bucharest University of Economic Studies, Romania - Law Department, Bucharest University of Economic Studies, Romania
• Pages: 43-47

The Improvement of Legal Framework of the Limited Liability

Company Provided by International Uniform Law

Associate professor Charlotte ENE

1

Lecturer Ileana VOICA

2

Abstract

One of the tasks assumed by the European Commission is to create a suitable

legal framework for companies in order to facilitate the cross-border cooperation and to

consolidate the European internal market. This article examines mainly the legal frame-

work o f Societas Privata Europaea, a supranational private limited liability company

designated especially for small and medium enterprises, as one of the dimension of the

harmonization process of the corporate law in the EU. In this regard, it starts by outlining

the evolution of the European Private Company, and then presents the proposal for the

Statute of this company. In the end, this article are analyzed o ther provisions regarding

similar supranationa l structure drafted by international law -makings in order to draw

the future developments. In conclusion, this form of supranational company will improve

the legal framework of Limited Liability Company by eliminating a great amount of un-

certainties in doing trans-border bu sinesses into internal market, and allowing to set up

the same European legal entity across the Member States.

Keywords: European company law, European Private Company, Societas Pri-

vata Europaea, cross-border activities, articles of association.

JEL Classification: K22, K33

1. Introduction

In order to facilitate the cross-border activities of those SMEs engaged in

integrated European market, it had been developed the European Private Com-

pany (as it is known the Societas Privata Europea), a new supranational form of

business organization.

Thus, on June 2008, the European Commission submitted a proposal for

a Council Regulation (hereinafter Regulation) on the Statute for a European Pri-

vate Company (EPC), „adapted to the specific needs of SMEs.”

3

One year later,

the European Parliament approved the proposed Regulation and it added the rec-

ommendation for the commission to amend it, stressing that this type of company

1

Charlotte Ene – Law Depart ment, Bucharest University of Economic Studies, Romania, E-mail:

enecharlotte@gmail.com.

2

Ileana Voica - Law Department, Bucharest University of Economic Studies, Romania, E-mail:

ileana_voica@yahoo.com.

3

Proposal for a Council Regulation on the Statute for a European Private Company, published

under COM (2008) 396/3.