European society is a form of a multinational society, the regulation of which is based on Community rules. The basis is Council Regulation (EC) No 2157/2001 on the Statute for a European Company (SE), followed by Council Directive 2001/86 / EC (SE Directive).
The SE Regulation foresees the adoption of laws in the Member States that fill the gaps that the regulation deliberately creates. The SE Regulation only regulates the basic status issues, their scope is far from exhaustive.
The Regulation either authorizes the Member States to create a specific rule - Member States may adapt the relevant issues for the SE without having to take into account the provisions they apply to the joint-stock company, are limited by the relevant European directives or refer directly to the stock law of Member States.
Benefits of a European Society:
- Most legal orders do not allow a registered office to be relocated abroad without the cancellation of the company, and thus the interruption of the continuity of legal personality. European company allows relocation to another state, thereby changing the applicable law.
- European society has a more flexible management and governance structure, and states are obliged to organize a SE based on their territory, both according to the dualistic and the monistic model (only the Board of Directors)
It does not differ from a regular joint-stock company. Mandatory share capital is created and is divided into shares and must be expressed in EURO. A minimum subscribed capital is of € 120,000 (however, conducting business in a particular field may require a higher amount).