Creation of a European Private Company Statute

Orgalime Position on Commission Communication COM (2003) 284 final

Orgalime very much welcomes the progress of the Action Plan on "Modernising Company Law and Enhancing Corporate Governance in the EU" and in this context especially the results of the feasibility study which came to the conclusion that there is a clear need for the creation of a European Private Company (EPC) statute for SMEs.

Orgalime believes that such a statute would represent a significant simplification in the regulatory environment in the EU. In the attached position paper we explain that, due to 25 very different national systems of company law, the establishment of subsidiaries in EU member states still entails serious difficulties and high costs. 

We therefore argue that the incorporation of an EPC should be as simple as possible and that complementary application of national company law provisions and cross-references to national company law must be avoided.