The Societas Europaea in Germany,

in particular in the context of the theory controversy

in the international corporate law

by:

Dipl.-Bw.(FH) / Dipl.-Vw. / Dipl.-Hdl. Martin Kronawitter

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II

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Table of contents

Abbreviations IV

A.

Introduction 1

B.

Characteristic of the Societas Europaea 3

I.

Objective of the Legislation 3

II.

Historical background 3

III.

Nature of the Societas Europaea 5

IV.

Relevant right 6

V.

Establishment forms 6

1.

Establishment by merger of corporations 7

2.

Establishment of a holding-SE 7

3.

Establishment of a daughter-SE 8

4.

Conversion of an existing corporation into a SE 8

5.

Secondary establishment by an existing SE 8

VI.

Corporate Governance of the SE 9

1.

General meeting 9

2.

Binaryistic system 9

a)

Supervisory board 9

b)

Executive committee 9

c)

Criticism at the binaryistic system 9

3.

One-board-system 10

a)

Board of directors 10

b)

Executive directors 11

c)

Criticism at the one-board-system 11

VII.

Co-determination 11

1.

Objective of the Council Directive regarding the co-determination 12

2.

Forms of the participation of the employees 12

a)

Special negotiating body 12

b)

Information and consultation by the SE representative body 13

c)

Participation of the employees in the organs of the SE 14

d)

Unresolved problems of German co-determination 16

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C.

The theory controversy in the international corporate law -

seat theory vs. formation theory 17

I.

Seat theory 17

1.

Transfer of the statute seat abroad 17

2.

Shifting of the administrative seat abroad 18

a)

Influx state follows the seat theory 18

b)

Influx state follows the formation theory 18

3.

Shifting of the statute or administrative seat into Germany 19

a)

Transfer of the statute seat into Germany 19

b)

Transfer of the administrative seat into Germany 19

4.

Criticism at the seat theory 19

II.

Formation theory 20

III.

Influence of the ECJ iurisdiction on the theory controversy 21

1.

The freedom of establishment with the way course 21

2.

The freedom of establishment with the influx 22

3.

Résumé of the freedom of establishment 23

IV.

,,Mobile seat theory" with the Societas Europaea 23

1.

Indication of the SE-VO for the validity of the formation theory 23

a)

Council Recital 23 23

b)

Art. 2 SE-VO 24

c)

Other indications 24

2.

Indication of the SE-VO for the validity of the seat theory 24

a)

Art. 7 SE-VO 24

b)

Art. 64 SE-VO 24

3.

Combination of the seat theory and the formation theory 25

4.

Seat of a Societas Europaea 25

a)

Present legal situation 25

b)

Legal situation after the entry into force of the MoMiG 26

5.

Transfer of seat of a Societas Europaea 26

D.

Summary 27

Bibliography 30

Other Sources 34

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Abbreviations

AG (Die)

Aktiengesellschaft [Corporation; review]

AktG

Aktiengesetz [Stock Corporation Act]

AO

Abgabenordnung [General Fiscal Law]

a.o. among

others

Art. Article

Artt. Articles

AuR

Arbeit und Recht (review)

AWD

Außenwirtschaftsdienst des Betriebs-Beraters (review)

BayObLG Bayerisches

Oberlandesgericht

[Bavarian Higher Regional Court]

BB Betriebs-Berater

(review)

BGBl.

Bundesgesetzblatt [Federal Law Gazette]

BGHZ

Sammlung der Entscheidungen des BGH in Zivilsachen

[Report of the Federal Court of Justice in civil cases]

BStBl.

Bundessteuerblatt [Federal Tax Sheet]

BT-Drucks. Bundestags-Drucksache

[printed matter of the Lower House of German Parliament]

BuW

Betrieb und Wirtschaft (review)

BVerfGE

Sammlung der Entscheidungen des BVerfG

[Report of the Federal Constitutional Court]

c. case

COM

Document of the European Commission

DB Der

Betrieb

(review)

DStR

Deutsches Steuerrecht (review)

DStRE

Deutsches Steuerrecht ­ Entscheidungsdienst (review)

EC European

Community

ECJ

European Court of Justice

ECR

European Court Reports

ECU

European Currency Unit

Ed. Editor

EEA

European Economic Area

EEC

European Economic Community

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EGBGB

Einführungsgesetz

zum

Bürgerlichen Gesetzbuch

[Introductory Act to the German Civil Code]

e. g.

exempli gratia

FB Finanz-Betrieb

(review)

FCC

German

Federal

Constitutional Court

(Bundesverfassungsgericht)

FCJ

German Federal Court of Justice (Bundesgerichtshof)

FFC

German Federal Finance Court (Bundesfinanzhof)

fn. footnote

FR Finanzrundschau

(review)

GmbH

Gesellschaft mit beschränkter Haftung [private limited company]

GmbHG

GmbH-Gesetz [Companies Act]

GmbHR GmbH-Rundschau

(review)

i. e.

id est, that means

IntGesR

International

Corporate

Law

KG

Kammergericht [superior Court of Justice]

KStG Körperschaftsteuergesetz

[Corporation

Tax

Law]

lit. littera,

letter

MoMiG

Gesetz zur Modernisierung des GmbH-Rechts und zur

Bekämpfung von Missbräuchen [law for the modernization of

the GmbH right and for the fight against abuses]

mn margin

number

NJW

Neue Juristische Woche (review)

No. number

NotBZ

Zeitschrift für die notarielle Beratungs- und Beurkundungspraxis

(review)

OJ

Official Journal of the European Union

OLG

Oberlandesgericht [Higher Regional Court]

p. page(s)

para. paragraph

RdW

Recht der Wirtschaft (review)

RG Reichsgericht

[supreme

court of the German Reich]

RGZ

Sammlung der Entscheidungen des Reichsgerichts in

Zivilsachen [Report of the supreme court of the German Reich

in civil cases]

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RIW Recht

der

internationalen Wirtschaft (review)

SE Societas

Europaea

SEAG

Gesetz zur Ausführung der Verordnung (EG) Nr. 2157/2001 des

Rates vom 8.10.2001 über das Statut der Europäischen

Gesellschaft [SE executive law]

SEBG

Gesetz über die Beteiligung der Arbeitnehmer in einer

Europäischen Gesellschaft [SE participation law]

SEEG

Gesetz zur Einführung der Europäischen Gesellschaft

[introductory law of the European company]

SE-RL

Council Directive 2001/86/EC of 8 October 2001 supplementing

the Statute for a European company with regard to the

involvement of employees

SE-VO

Council Regulation (EC) No 2157/2001 of 8 October 2001 on

the Statute for a European company (SE)

subpara. subparagraph

TEC

Treaty establishing the European Community

UmwG

Umwandlungsgesetz [Reorganization Act]

vs. versus

WISU Wirtschaftswissenschaftliches Studium (review)

WM Wertpapier-Mitteilungen

(review)

ZGR

Zeitschrift für Unternehmens- und Gesellschaftsrecht (review)

ZIP

Zeitschrift für Wirtschaftsrecht (review)

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A. Introduction

End of the 50′s of the past century some scientists have already supported supranational

limited companies in Europe.1 Finally, the European Commission submitted its first

suggestion over the statute for European companies in 1970.2 After more than three decades

of continuing, intensive negotiations, in particular over the arrangement of workers´

participation,3 the European Heads of State and Government agreed on the introduction of a

European company at the end of 2000. The European Council of Ministers adopted the

"Council Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European

company (SE)"4 [shortened by SE-VO] and the "Council Directive 2001/86/EC of 8 October

2001 supplementing the Statute for a European company with regard to the involvement of

employees"5 [shortened by SE-RL]. Although the regulation could have been entered into

force directly in all member states (Art. 249 para. 2 TEC), Art. 70 SE-VO allowed a generous

period by 8 October 2004, within the national legislators had to transform the directive into

national law. In opinion of the commission only both complementary legal instruments

together could regulate the common legal form of the European company sufficiently.

Therefore the regulation entered into force explicitly, as soon as the directive was converted

into the respective right of the member states,6 which should happened in accordance with

Art. 14 SE-RL at latest by 8 October 2004. Since this date, transnational active capital

companies are available in the entire area of the European Union and in the member states of

the European Economic Area (EEA)7 in the legal form of the European company, usually

shortened with SE for "Societas Europaea".

In the Federal Republic of Germany, the legislation decided the "Gesetz zur Einführung der

Europäischen Gesellschaft (SEEG)"8 [introductory law of the European company], which

converted with Art. 2, the SE-Beteiligungsgesetz (SEBG) (SE participation law), the directive

1 See Sanders, AWD (RIW) 1960, p. 1-5.

2 Proposal for a Council regulation on the statute for a European company of 30.6.1970, OJ C 124/1, 10.10.1970.

3 See Jahn/Herfs-Röttgen, DB 2001, p. 634.

4 Council Regulation (EC) No 2157/2001 of 8 October 2001 on the Statute for a European company (SE),

OJ L 294/1, 10.11.2001; shortened by SE-VO.

5 Council Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a European company with

regard to the involvement of employees, OJ L 294/22, 10.11.2001; shortened by SE-RL.

6 See the Regulation Recital 22 of the SE-VO.

7 Because of the resolution of the EEA Joint Committee No. 93/2002 of 25.6.2002, the SE-VO and the SE-RL

were transferred to the agreement over the EEA, so that the legal form of the European company is selectable

also for enterprises in Iceland, Liechtenstein and Norway (EEA agreement, appendix XXII, No. 10a.01 (32001

R 2157)).

8 Gesetz zur Einführung der Europäischen Gesellschaft vom 22.12.2004 (introductory law of the European

company), BGBl. I 2004 p. 3675.

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