Considerations On The New Community Legislation Regarding The European Private Society

The European Commission has proposed a new legal form for European companies and for the private European society, or “Societas Privata Europaea” (SPE). The advantages of this new legal form are a greater flexibility and lower costs for small and medium enterprises who wish to pursue activities in other states of the European Union than they are registered. According to the Regulation submitted to discussion, the specificity of the European Private Society in terms of its legal form is that, on the one hand, it undertakes a number of features of joint stock companies, such as the method of formation of governing bodies (the two, dual and unitary systems being accepted), but are retained also specific elements to the limited liability companies, meaning the fact that shares may not be offered for public trading. In terms of how social responsibility and contribution in proportion to the capital, this feature included in the Regulation is found in both legal forms. By this time the Community legislature has followed the new legal form of company are not subject to mandatory capital requirements high so provided in this respect the amount of 1 euro, so that provides to the contrary is inconsistent with the rationale that has outlined the relevant Community legislation by a company widely permissive. Concluding, the article subject to comment retains those provisions of the new Community act defining the specific new limited liability company establishing the European elements while giving the European business environment the interest for it.