Societas Europaea

Societas Europaea
European Company, Also known as Societas Europaea or SE.
A company which is formed in accordance with the European Company Statute. SEs are subject to certain EU-wide laws wherever formed, such as those relating to share capital, internal regulation, accounts and worker participation. They are subject to national corporate laws in many other respects, for example, in relation to formation, issue and purchase of shares, taxation and insolvency. SEs must have a minimum share capital of euro 120,000. Only pre-existing companies with a two-year operating history in different member states are able to incorporate an SE. An SE can be established:
• By the merger of two or more existing public limited companies (public limited company) from at least two different member states.
• By the formation of a holding company promoted by public or private limited companies from at least two different member states.
• By the formation of a subsidiary of companies from at least two different member states.
• By the conversion of a public limited company which has, for at least two years, had a subsidiary in another member state.
The European Company Statute is established by two pieces of legislation, namely a Regulation (directly applicable in member states) establishing the company law rules and a Directive (which has to be implemented in national law in all member states) on worker involvement. The Regulation and Directive entered into force on 8 October 2004.
Glossary
+ European Company, Also known as Societas Europaea or SE. A company which is formed in accordance with the European Company Statute. SEs are subject to certain EU-wide laws wherever formed, such as those relating to share capital, internal regulation, accounts and worker participation. They are subject to national corporate laws in many other respects, for example, in relationship to formation, issue and purchase of shares, taxation and insolvency. SEs must have a minimum share capital of euro 120,000. Only pre-existing companies with a two-year operating history in different member states are able to incorporate an SE. An SE can be established:
• By the merger of two or more existing public limited companies (public limited company) from at least two different member states.
• By the formation of a holding company promoted by public or private limited companies from at least two different member states.
• By the formation of a subsidiary of companies from at least two different member states.
• By the conversion of a public limited company which has, for at least two years, had a subsidiary in another member state.
Related links

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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