Recent Developments and Issues in European Company Law: The European Private Company

With its resolution from February 1, 2007, the European Parliament (EP) requested the European Commission (EC) to submit a legislative proposal on the Statute for a European Private Company (EPC) by end of 2007 at the latest. The concept of the EPC focuses on small and medium sized enterprises (SMEs). In its "Legislative and Work Programme 2008" from October 2007, the EC finally agreed to elaborate a proposal within the next 12 to 18 months. According to the EC, the objective of the EPCis to enhance the mobility and competitiveness of European SMEs. Providing SMEs with common rules in Member States (MS) would make it easier for them to conduct cross-border business by facilitating the formation of new businesses in other MS and/or the restructuring of existing businesses into simpler structures. Operating across MS with the same corporate rules could reduce compliance costs, and make the creation and operation of companies in the European Union (EU) simpler and cheaper.