European Economic Law 2016/2017

SOURCES  

SOURCES  OF  EUROPEAN  UNION  LAW:  

PRIMARY   LAW:     Treaties,   General   Principles   (Unwritten:   elementary   concept   of   law,   f.i.  

principles  contained  in  all  costitutions.  

INTERNATIONAL   AGREEMENTS:   are   between   primary   and   secondary,   can’t   be   contrary   to  

primary  legislation  

SECONDARY  LAW:  made  by  institutions  (Parliament,  Council,  commission)  with  power  given  

by  treaties.  No  hierarchy    between  them:  

-­‐ Binding  acts:   Regulation,  Directives  and  Decisions  

-­‐ Not  binding  acts:   Opinions,  recommendations  

EU  PARLIAMENT     INTEREST  OD  CITIZENS  

!

EU  COUNCIL     INTEREST  OF  STATES  AND  GOVERNMENT  

!

EU  COMMISSION     GENERAL  INTEREST,  only  institution  that  can  propose  acts  

!

Legislative  Act   Not  legislative  Act  

Adopted  by  ordinary  legislation   Parliament  not  involved  

COODECISION:   Parliament   and   council  

together  

REGULATION:   Binding   entirely,   directly   applicable   (automatically).   Capable   of   imposing  

obligation  on  individuals.  

DIRECTIVES:  No   general   application,   binding  only  for  the  result  they  want  to  achieve.   Not  

directly  applicable  (transposition  by  member  state).  Member   state   chooses   form   &   methds   of  

application.    The  State  is  liable  for  the  failure,  individual  have  to  prove  that:  1)  State  liability  

has   to   exist   in   the   failure   2)   individual   has   to   proof   that:   directive   conferred   specific   rights   on  

him,  link  between  the  state’s  failure  to  implementation  directive  and  damage,  3)  serious  break  

of  the  law.  

Direct  applicability   Direct  effect  

Rules   becomes   automatically   part   of   the   Individuals   can   invoke   provisions   in   front   of  

national  legal  system,  NOT  TRANSPOSED.   a  court  (no  horizontal  direct  effect):  

-­‐ VERTICAL:  State  –  Individual  

-­‐ HORIZONTAL:  Individual  -­‐  Individual  

DECISIONS:  Administrative  acts.  Addressed  to  individual  state.  Binding  entirely.  

RECOMMENDATIONS:     Enacted   by   institutions   and   addressed   to   other   institution   or   MS.   It  

suggest  a  line  of  action  without  imposing  any  legal  obligation  

OPINIONS:  Allows  to  make  a  statement  without  legal  obligation.  Not  binging.  Committees  give  

opinions  from  their  specific  regional  or  economic  and  social  viewpoint.  

PRINCICPLE   OF   PRIMACY   In   case   of   conflict   between   EU   laws   and   National   laws,   the   EU  

!  

rules  prevails  without  waiting.  Even  to  the  constitution.  

EUROPEAN  ECONOMIN  INTEREST  GROUPING  

CORPORATE  FORM  

Legal  personality  

• Unlimited  liability   (from  liability  comes  protection  for  third  parties)  

• Sources  of  law:  Regulation,  National  law,  Contract.  A  Regulation  (direct  effect),  not  a  

• directive  

No  minimum  capital  –   you  can  exit  at  any  time  

• No  rules  about  share  profits  

• Not  a  Company  Society  /   cooperation  among  more  companies  (similar  to  consortium)  

• for   small  and  medium  size  

AIM:   not  to  make  profits,  help  members  in  running  a  business  

• WHO   CAN   JOIN:   who   already   runs   a   company,   also   professionals,   university,   etc.  

• Members  from  at  leas  two  countries  

Contract  minimum  content:  Address  –  Object  of  activity  –  duration  

• Can   not   ask   money   to   the   public,   not   trustable   enough.   Structure   too   flexible   for  

• public  investments  

If  a  member  dies,  the  son  will  not  be  part  of  the  corporation  

• Address  transfer:  Proposal  published  2  month  before  disclosure  

• Life  of  EEIG   finishes  not  after  judge  declares  nullity,  but  after  liquidation  

• Activities   of   EEIG   have   to   be   related   and   merely   ancillary   to   members   to   pool   their  

• activity  

ORGANIZATION:  AL  LEAST  2  ORGANS:   MEMBERS  &  MANAGERS   (distinguished)  

MEMBERS:   Jointly   (creditors  can  ask  to  pay  the  full  amount)  

and   severally   liable   (with  their  

goods).  

-­‐ Unlimited  liability  with  third  parties  

-­‐ Limited  liability  with  other  members  

Creditors   can’t   ask   directly   the   member,   they   ask   first   the   EEIG.   New   members   pays   with  

personal  assets  even  for  obligation  made  before  (strong  protection  for  creditors,  Ne  members  

can  be  informed),  they  can  get  an  exemption  before  joining  but  it  has  to  be  published.  

Some  decisions  require  unanimity  (new  members,  transfer  of  address),  etc.  

UNIFORM  LEGAL  FRAMEWORK  

EACH  MEMBER  RETAINS  ITS  LEGAL  AND  ECONOMIC  INDEPENDENCE  

To  national  legislation:  

-­‐ Recognizing  the  legal  personality  

-­‐ Restriction  to  certain  categories  of  persons  

-­‐ Restriction  of  number  of  members  

-­‐ Possibility  to  reject  the  transfer  of  the  official  address  

Financing:  

-­‐ Creation  of  capital  

-­‐ Membership  fees  

-­‐ Remuneration  of  services  rendered  bu  EEIG  

-­‐ Access  to  external  financing  

SOCIETAS  EUROPEA  

1^  form  of  European  company,  CORPORATE  FORM  

Limited   liability   (managers   liable   only   for   loss   caused   by   inobservance   of  

• legalobligations)  

European  public  company    

• It  has  legal  personality  

• Minimum   capital   120.000€   (Member   state   can   ask   more)-­‐   Number   of   shares  

• independent  from  the  number  of  shareholders  

For  employee  treatment  SE  replies  to  national  legislation.  No  SE  can  be  set  out  without  

• an  arrangement  for  involvement  of  employees.    

If  it  changes  address  outside  the  EU,  it  has  to  be  wound  up.  

• Address  where  the  administrative  head  office  is  

•

FORMATION   (important  the  CROSS  BORDER  ELEMENT):  

-­‐ MERGER  (can  be  negative  fo  shareholders,  they  can  have  a  different  number  of  shares  

with   less   value)   the   previously   company   don’t   exist   no   more.   Only   for   public   limited  

company,  unification  of  legal  personality.  

Phases:  

 -­‐  PLAN:   not   ready   to   write   down   an   act,   needed   to   protect   shareholders   and   creditors.  

Final  Act:  DRAFT.   Information  needed:  Amount  of  compensation,  Names  and  Dates.  

Disclosure:   Managers  have  to  inform  creditors  and  minority  shareholders  and  give  the  

information   needed.   The   plan   has   to   be   registered   and   creditors   can   do   opposition   to   the  

merger  (2month).  

-­‐  DECISION:  in  a  public  meeting,  the  company  has  to  ask  the  majority  of  shareholders  to  

agree.  The  Formal  act  has  to  be  published  in  international  register.  

-­‐   MERGER  ACT:   published  in  national  register  

-­‐ HORDING   COMPANY   (a   company   gets   shares   from   another   company   and   controls  

them,   convenient   to   open   subsidiaries)   Each  company  continues  to  exist.  Available   for  

Public  limited  company  and  Private  limited  company.  

-­‐ SUBSIDIARY  We  don’t  have  to  start  from  a  public  company,  also  from  partnership  or  

legal  entities  

-­‐ TRANSFORMATION   OF   PUBLIC   LIMITED   LIABILITY   (LIKE   SPA)   IN   SE   the   company  

must   have   a   subsidiary   in   a   foreign   country   for   at   least   2   years.   The   company