EUROPEAN COMPARATIVE COMPANY LAW -...

EUROPEAN COMPARAT IVECOMPANY LAW

Recent attempts to harmonise company law within the EU have led to majorEuropean company law reforms. This examination of European companylaw uses seven European countries as case studies: the United Kingdom,France, Germany, Italy, Spain, Belgium and the Netherlands. Taking intoaccount recent company law reform within these jurisdictions and theextensive action plan adopted by the European Commission, the authorsconsider EU Company Law Directives, the case law of the Court of Justiceon the directives and the right to free movement and establishment in theTreaty of Rome. Attention is also given to the European Economic InterestGrouping (EEIG) and the European Company (SE). At a timewhen both EUand national company laws are undergoing significant change and reform,this book will aid understanding of an emerging discipline.

Professor Mads Andenas is a Professor at the University of Oslo and theUniversity of Leicester, the Director of the Centre of Corporate andFinancial Law, Institute of Advanced Legal Studies, University ofLondon, and a Visiting Senior Research Fellow, Institute of Europeanand Comparative Law, University of Oxford.

Professor Frank Wooldridge is a former Professorial Fellow of the BritishInstitute of International and Comparative Law, London and the formerLaw Society Senior Research Fellow, Institute of Advanced Legal Studies,University of London. Both authors have been members of the CompanyLaw Committee of the Law Society of England and Wales.

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EUROPEAN COMPARATIVE

COMPANY LAW

MADS ANDENAS

and

FRANK WOOLDRIDGE






CAMBR I DG E UN IV ER S I T Y P R E S S

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European comparative company law / Mads Andenas and Frank Wooldridge.p. cm.

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CONTENTS

Preface page xiiiTable of Cases xviTable of Legislation xxi

1. Introduction 1I. The new European company law 1II. An outline of this book 3

2. European and comparative company law 7I. Harmonisation and free movement 7

A. Treaty provisions 7B. Free movement and the fundamental freedoms: the right

of establishment 10C. Free movement of capital 14D. The harmonising directives in the field of company law 20E. Draft legislation 28F. Methodological problems concerning company law

harmonisation 33II. Comparative company law 41

A. Introductory remarks 41B. Comparative law and the harmonisation of company law 42

III. Comparative company law and national legal reforms 49A. Continental reforms 49B. UK Company law reform and comparative law – DTI’s

strategic framework 50

3. Formation of companies 52I. Introduction 52II. Formation of private and public companies in the United

Kingdom 53A. Process of formation 53B. Special rules applicable to public companies 54

v






C. The memorandum and articles (constitution)of the company 55

D. Constructive notice 58E. Pre-incorporation contracts 59F. Transfer proposals in the consultation document ‘Completing

the structure’ 60III. Formation of private and public companies in France 61

A. The société à responsabilité limitée (SARL) 62B. The société anonyme (SA) 64

IV. Formation of private and public companies in Germany 67A. Formation of private companies 67B. Special rules applicable to one-man companies 70C. Liabilities in respect of pre-registration activities 70D. Formation of an AG 72E. Special rules relating to the one-man AG 77F. Liability in respect of pre-incorporation transactions 77

V. Formation of public and private companies in Italy 78A. Formation of public companies 78B. Formation of private companies in Italy 82

VI. Formation of private and public companies in Spain 83A. Formation of private companies in Spain 83B. Single member private companies 85C. Liabilities in respect of pre-incorporation transactions 86D. Simplification of incorporation procedures 86E. Formation of public companies in Spain 87F. Liabilities in respect of pre-incorporation transactions 89

VII. Formation of private and public companies in Belgium 90A. Formation 90B. Liability in respect of pre-incorporation transactions 92

VIII. Formation of private and public companies in theNetherlands 92A. Liabilities in respect of pre-incorporation transactions 94B. Dutch legislation on pro-forma companies 95

4. The types of business organisation 99I. Introduction 99II. Public limited liability companies 103

A. The French SAS 105B. Limited partnerships with shares 107

III. Private companies 109A. Private companies in the United Kingdom 109B. Private companies in France 111C. Private companies in Germany 115

vi C O N T E N T S






D. Private companies in Italy 119E. Private companies in Spain 122F. Private companies in Belgium 124G. Private companies in the Netherlands 128H. Proposals for the European Private Company 129

IV. Partnerships 130A. Civil partnerships 131B. Silent partnerships and other forms of partnership without legal

personality 132C. General partnerships 135D. General partnerships in some other European countries 137E. Limited partnerships 152F. Special type of limited partnership in Germany and France 159

5. Share (or equity) capital and loan capital 168I. Equity securities issued by United Kingdom companies 170II. Equity securities issued by French companies 171

A. Preference shares (actions de préférence) 173B. Securities giving rights of conversion into shares (titres donnant

accès à terme au capital) 174III. Equity securities issued by German companies 175

A. Private companies 175B. Public companies: the provisions of Articles 139–141 of the

German Aktiengesetz (AktG) 176IV. Equity securities issued by Italian companies 180V. Equity securities issued by Spanish companies 185VI. Equity securities issued by Belgian companies 186

A. Belgian provisions concerning preference shares 187B. Private companies 187C. Public companies 188

VII. Equity securities issued by Dutch companies 189A. Preference shares 190B. Priority shares 191C. Warrants 191

VIII. Increase and reduction of capital 192A. Applicable legal rules in the United Kingdom 192B. Applicable legal rules in France 195C. Applicable rules of law in Germany 202D. Applicable legal rules in Italy 211E. Applicable legal rules in Spain 218F. Applicable legal rules in Belgium 222G. Applicable legal rules in the Netherlands 226

C O N T E N T S vii






IX. Acquisition, purchase, and redemption by a companyof its own shares 230A. Applicable legal rules in the United Kingdom 230B. Applicable legal rules in France 233C. Applicable legal rules in Germany 235D. Applicable legal rules in Italy 237E. Applicable legal rules in Spain 239F. Applicable legal rules in Belgium 241G. Applicable legal rules in the Netherlands 244

X. Financial assistance for the acquisition of shares 246A. Loan capital 248B. The position in the United Kingdom 249C. The position in France 250D. The position in Germany 253E. The position in Italy 256F. The position in Spain 259G. The position in Belgium 261H. The position in the Netherlands 264

6. Management and control of companies 265I. Introduction 265II. The position in the United Kingdom 267

A. General considerations 267B. The appointment, vacation of office and removal

of directors 268C. Powers of directors 269D. Duties of directors 271E. The general meeting 275F. Minority protection 278

III. The position in France 283A. Managers of an SARL; their powers

and duties 283B. Control over the managers of an SARL 284C. Position of the members of an SARL 285D. Different management structures in an SA 286E. The single board system 287F. The dual board system 290G. Directors’ liability 293H. The position of the shareholders 295

IV. The position in Germany 297A. The management and control of a GmbH 297B. The management and control of an AG 307

viii C O N T E N T S






V. The position in Italy 320A. Public companies 320B. Private companies 346

VI. The position in Spain 352A. Private companies (SRLs) 352B. Public companies (SAs) 357

VII. The position in Belgium 361A. Patterns of management and control 361B. Public companies 361C. Private companies 367

VIII. The position in the Netherlands 368A. Management structures 368B. The regime applicable to ‘large’ companies 369C. Powers and duties of the management

board 371D. The general meeting 373E. Rights of minority shareholders 374

7. Business entities governed by Community law 377I. European Economic Interest Grouping 377

A. History and scope 377B. Profits of the grouping 380C. Prohibitions 380D. Limitation on membership 381E. Formation and publicity 381F. Transfer of the official address 383G. Structure and functioning of the grouping 384H. Winding up and dissolution 387I. Legal regime applicable to the grouping 389J. Implementation 391

II. The European Company 391A. Introductory remarks 391B. Capital, shares and bonds 395C. Principal organs 395D. Annual accounts and consolidated

accounts 400E. Winding up and other insolvency procedures 401F. Entry into force 402G. Employee involvement 402H. Concluding remarks 410

III. European Cooperative Society 412IV. The European Private Company 414

C O N T E N T S ix






8. Employee participation 417I. Introduction 417II. The position in the United Kingdom 419III. The position in France 419

A. Works council 420B. Personnel representatives 422C. Trade union delegations 422D. Purpose of the different institutions 422E. Employee representatives on the boards

of public companies 423IV. The position in Germany 424

A. Works councils 424B. Functions of the unions 427C. Employee representation on the supervisory board 427D. Codetermination in the coal, iron and steel industry 428E. Codetermination in certain holding companies 429F. Codetermination under the Works Councils Act 1952 429G. Codetermination under the Act of 2004 430H. Codetermination under the 1976 Act 431I. Constitutionality of the Codetermination Act 1976 433

V. The position in Italy 435VI. The position in Spain 436

A. Works councils 436B. Employees’ meetings 437C. Trade union section 437

VII. The position in Belgium 437VIII. The position in the Netherlands 438

A. Works councils 438B. Employee participation on the supervisory board 440

IX. Community law and employee participation 440A. Collective redundancy 440B. Transfer of undertakings 441C. European Works Councils Directive 442D. Directive on a general framework for

informing and consulting employees in the EC 445E. Models for employee participation in the draft

Fifth Directive 446

9. Groups of companies 448I. Introduction 448II. The preliminary draft Ninth Directive 449III. European Community legislation on groups 450

x C O N T E N T S






IV. German Konzernrecht 451A. Connected companies 452B. Integration 457C. De facto groups 458D. Contractual groups involving private companies 461

V. The new provisions of Italian law concerning groups ofcompanies 467

VI. Definition of groups of companies and related concepts 470A. The position in the United Kingdom 470B. The position in France 472C. The position in Germany 473D. The position in Italy 473E. The position in Spain 474F. The position in Belgium 476G. The position in the Netherlands 478

VII. Group liability 480A. Special provisions protecting creditors 484B. Minority shareholder protection 485

10. Cross-border mergers and acquisitions 491I. Introduction 491II. Cross-border mergers 492

A. Influence of the Third Directive 492B. History and legal basis 493C. Advantages over the European Company Statute 493D. Scope 493E. Cash and shares components of merger

consideration 494F. Relevance of national law 495G. Requirements governing formation and disclosure 495H. Location of the registered office: the real seat

doctrine 496I. Independent expert reports 496J. The protection of shareholders and creditors 497K. Opposition on public policy grounds 497L. Scrutiny and publicity 497M. Consequences of the merger 498N. Employee participation 499O. Concluding remarks on the Tenth Directive 504

III. Takeovers 504A. Introductory remarks 504B. The Thirteenth Directive on Takeovers 506

C O N T E N T S xi






11. Investor protection 516I. Introduction 516II. Insider dealing 519III. Disclosure 521IV. Market manipulation 524V. Standard of communication 526VI. Safe harbour 527VII. Preventive measures 529VIII. Supervisory authority and sanctions 530IX. Implementation in the Member States 531X. Implementation in the United Kingdom 532XI. Implementation in Germany 534

Index 536

xii C O N T E N T S






PREFACE

This book is a contribution to the emerging discipline of comparativeEuropean company law. The new discipline remains rooted in the com-pany laws of the different Member States. European Union directivesprovide a framework and more and more detail. Free movement isimportant: the directives and regulations adopted by the EU gives effectto the right of establishment and the free movement of capital. Thefurther internationalisation of capital markets is another importantfactor. Academic scholarship has provided insights that contribute tothe reform process. In parallel, the transformation to a market economicsystem in former communist countries has provided a rich field forscholarship. Knowledge about other Member States’ company laws hasa central role here. Knowledge may be necessary in order to understandprovisions of an EU directive, or the functioning of a feature of one’s ownor another country’s company law.

New features of company law in the EU include incorporation in oneMember State under another Member State’s laws, cross border mergersand new EU company forms. EU law and more than one Member Statejurisdiction are involved at the same time. Also here, knowledge of thelaws of the other Member States is required, both in policy making, lawreform, corporate planning and transactions.

This knowledge is also often required even if the matter is a purelyinternal one to oneMember State. The treaty freedoms and directives canoften not be correctly understood and applied if the analysis is limited tothe relationship between one’s own jurisdiction and EU law. It is neces-sary also for this reason, to look to the laws of other Member States.

Company law is undergoing fundamental change in Europe. AllEuropean countries have undertaken extensive reform of their companylegislation which remains in a state of permanent reform. Domesticcompany law reform has traditionally been driven by initiatives toremedy weaknesses that have come to light in larger corporate failuresor scandals. Initiatives to make corporate governance more effective is

xiii






one such feature of recent European company law reform. Companylaw reform has at the same time been taken in the opposite direction bythe wish to simplify and lessen the burdens, in particular on smallerand mediumsized businesses (SMEs). The new Member States havegone through even more fundamental reform to facilitate a modernmarket economy and then to implement the acquis communautaire incompany law. The prospect of regulatory competition increasing thenumber of domestic businesses incorporating abroad has, for instance,strengthened the pressure to reduce capital requirements in nationalcompany laws. The case law of the European Court of Justice on theright of establishment and to provide services, and the free movementof capital, has in the recent years been brought to bear on nationalcompany law and corporate practice. National company law rules havebeen set aside as restricting the free movement of companies orrestricting the exercise of the fundamental freedoms in other ways.As European Union law gradually opens up the choice of country ofincorporation for businesses in Europe, the competition betweennational company laws is increasing further.

The harmonisation of European company law through EU legislation(directives and regulations) has also been given a new impetus by the caselaw of the Court of Justice and different initiatives by the EuropeanCommission. This requires transposition in national company legisla-tion. New EU legislation gives further effect to the free movement ofcompanies, which again opens up for regulatory competition. Nationalcompany legislation cannot now be applied without regard to the caselaw of the European Court of Justice on the fundamental freedoms in theEC Treaty on the right of establishment and to provide services and thefree movement of capital. Many provisions of the national legislationrequire the active use of the directives they transpose.

In case of conflict, EU law requires that it is the rule of the directivethat is applied. More generally, the EU company law legislation indirectives and regulations constitutes a system which is the basic frame-work for national company law, and often the natural starting pointwhen company law matters are to be resolved. Neither can EU companylaw legislation in directives and regulations be applied without regardto the fundamental freedoms in the EC Treaty and the case law of theEuropean Court of Justice. EU company legislation itself has to beinterpreted and applied so that it complies with in the EC Treaty onthe right of establishment and to provide services, and the free move-ment of capital. In case of conflict here, the Treaty prevails.

xiv P R E F A C E






Comparative law is not of any less importance in this new context. Theapplication of the fundamental freedoms in the EC Treaty in the reviewof national company law, can be assisted by analysis of the company lawsof other Member States. That is even more so the case for the transposi-tion or subsequent interpretation of EU directives. Concepts and rulesoften originate in a national system, and even if they may change whenthey are imported into a directive, knowing about their original meaningmay provide assistance. Also, the way that directives have been trans-posed in other Member States may assist when a directive is to be giveneffect in the application of national company legislation.

Company law has traditionally been a fruitful field for comparativestudy. There is an increasing need for knowledge about the core featuresof the different national systems. The practitioner, judge, law reformerand scholar share this need. EU law and comparative law are disciplineswith their own methodology. Our focus in this book is limited to thenormative system of national company laws within the framework of EUlaw. Our ambition has not been to provide an analysis of the economic orsocial contexts which are important for the understanding of how thedifferent company law rules function in the different jurisdictions.

We have collaborated on this project for some years and share respon-sibility for the outcome to which we have contributed in equal measure.

Mads Andenas and Frank WooldridgeLondon, January 2008

P R E F A C E XV






TABLE OF CASES

ECJ Cases

Arjomari-Prioux/Wiggins Teape [1991] 4 CMLR 854 451

CaixaBank France, C-442/02 [2004] ECR I-8961 12Cartesio, C-210/06 OJ 2006 C165 13–14, 56Centros Ltd v. Erhvervs- og Selskabsstyrelsen, C-212/97 [1999] ECR I-1459 4, 11–13, 34,

36, 95, 96–8Commission v. Belgium, C-503/99 [2002] ECR I-4809 14, 15–16Commission v. Germany, C-112/05 19Commission v. Italy, C-174/04 [2005] ECR I-4933 19Commission v. Netherlands, C-282/283/04 [2006] ECR I-9141 19Commission v. Portugal, C-367/98 [2002] ECR I-4731 14, 15–17Commission v. Spain, C-463/00 [2003] ECR I-4581 17–18Commission v. United Kingdom, C-98/01 [2003] ECR I-4641 17Cooperative Rabobank, C-104/97 [1997] ECR I-7211 43

Daihatsu, C-97/96 [1997] ECR I-6843 8Daily Mail, R v. Treasury ex p, Case 81/87 [1988] ECR 5483 13, 14, 30–1,

56, 496De Lasteyrie du Saillant, C-9/02 [2004] ECR I-2409 12

Elf-Aquitaine, Commission v. France (Elf-Aquitaine), C-483/99 [2002] ECR I-4781 14,15–16

Gebhardt, Case 55/94 [1995] ECR I-4165 11, 12

Kamer van Koophandel en Fabrieken voor Amsterdam v. Inspire Art Ltd, C-167/01,[2003] ECR I-10155 4, 97

Katsikas, C-132/91, C-138/91 and C-139/91 [1992] ECR I-6577 442Keck and Mithouard, C-267/268/91 [1993] ECR I-6097 17Konle, C-302/97 [1999] ECR I-3099 14Kraus, Case 19/92 [1993] ECR I-1689 11

xvi






Mac Quen, C-108/96 [2001] ECR I-837 12Marks & Spencer, C-62/00 [2002] ECR I-6325 10Metallgesellschaft Ltd and others v. IRC and another and Hoechst AG and

Another v. Same, C-397/98 and C-410/98 [2001] ECR I-1727 11

Ny Mölle Kro, Case 287/86 [1987] ECR 5465 442

Pfeiffer, C-255/97 [1999] ECR I-2835 11

Reyners v. Belgium, Case 2/74 [1974] ECR 631 11

Saldanna and MTS Securities Corporation v. Hiross Holding, C-122/96 [1977]ECR I-5325 8

Sevic Systems AG v. Amtsgericht Neuwiel, C-411/03 [2005] ECR I-10805; [2006] 1CMLR 45; [2006] 4 All ER 1072 4, 11–12, 26, 493, 496

Spikers v. Benedik, Case 24/85 [1986] ECR 1119 442Suzen, C-13/95 [1997] ECR I-259 442

Thieffry, Case 71/76 [1977] ECR 765 11Tomberger, C-234/94 [1996] ECR I-3145 40

Überseering BV v. Nordic Construction Company Baumanagement GmbH , C-208/00[2002] ECR I-9919 4, 11, 30–1, 36, 98, 378, 392

Wendelboe, Case 19/83 [1985] ECR 457 442

X and Y, C-436/00 [2002] ECR I-10829 12

Domestic Cases

Belgium

Pasicrise [1994] Ghent Commercial Tribunal 348 364

France

Cour de Cassation20 November 1922, Société Lambourn v. Varounis DS-1926, I-305 481Société Immobilière et Financière du Parc v. Bitsch, Gaz Pal 1958/1, 150 48112 November 1962, Pilon v. SA Philippe Pain et Vermorel, RD 1962, 648 48124 January 1995, Revue des Sociétés 1995 46 166Com, 3 May 2001 113

T A B L E O F C A S E S xvii






Germany

Bundesgerichtshof (Supreme Court)[1975] NJW 212 317[1994] ZIP 1103 302[1995] NJW 398 302[1995] NJW 1359 300[1997] NJW 1923 166[1998] NJW 1645 71[2000] NJW 2983 300[2001] NJW 1042 71BGHZ 9, 157 117BGHZ 13, 179 143BGHZ 14, 25 117BGHZ 14, 264 117BGHZ 60, 324 165BGHZ 65, 15 ITT 462, 482BGHZ 65, 378 72BGHZ 69, 334 Veba Gelsenberg 452BGHZ 70, 132 77BGHZ 71, 296 143BGHZ 72, 45 72BGHZ 75, 334 203BGHZ 76, 335 203BGHZ 80, 69 Süssen 462, 482BGHZ 80, 129 69, 72, 77BGHZ 80, 182 72BGHZ 83, 122 (Holzmüller) 166, 313, 314BGHZ 85, 293 47BGHZ 89, 162 Hermann/Ogilvy 462, 482BGHZ 90, 378 203BGHZ 92, 253 Siemens 461BGHZ 94, 324 301BGHZ 95, 330 Autokran 462, 463, 482BGHZ 97, 269 30BGHZ 103, 184 Linotype 487BGHZ 105, 324 Supermarkt 461BGHZ 107, 7 Trefbau 463BGHZ 110, 342 165BGHZ 111, 224 117BGHZ 115, 187 Video 452, 463BGHZ 122, 123 TBB 463

xviii T A B L E O F C A S E S






BGHZ 126, 181 302BGHZ 129, 136 Girmes 487BGHZ 134, 333 72BGHZ 134, 392 166BGHZ 146, 341 101, 132BGHZ 149, 10 Bremer Vulkan 464BGHZ 151, 181 KBV 464, 466BGHZ 154, 370 132II ZR 3/04, Trihotel 118, 466II ZR 206/02 Autohändler [2005] ZIP 117 465II ZR 256/02 Unterschlagen [2005] ZIP 250 465

Bundesverfassungsgericht (Constitutional Court)BVerfGE 50, 290 433BVerfGE 99, 367 429

Oberlandesgericht (OLG) (Court of Appeal)Munich [1995] Die AG 232, 233 (EKATT/Riedinger) 313

Reichsfinanzhofdecision of 18 February 1933, RStBI 375 159

ReichsgerichtRGZ 105, 101 103RGZ 125, 356 317RGZ 128, 1 117RGZ 166, 129 117

Netherlands

19 February 1988, HR 1988, NJ No.487 48118 November 1994, HR 1995, NJ No.170 482

United Kingdom

Adams v. Cape Industries [1990] Ch 433 481Allen v. Gold Reefs of West Africa (1900) Ch 656 179Bell v. Lever Bros [1932] AC 161 480Birch v. Cropper (1889) 14 App Cor 529 170Brady v. Brady [1989] AC 755 247, 272Canadian Safeway v. Thompson [1951] 3 DLR 295 272City Equitable Fire Insurance, Re [1925] Ch 407 275Clark v. Cutland [2003] EWCA 810 280Cook v. Deeks [1916] 1 AC 554 272Daniels v. Daniels [1978] Ch 406 278D’Jan of London, Re [1993] BCC 646 271, 275

T A B L E O F C A S E S xix






Ebrahimi v. Westbourne Galleries Ltd [1973] AC 360 281Eley v. Positive Government Secretary Life Assurance Co. [1875] 1 Ex D 20 58Ernest v. Nicholls (1853) 6 HL 401 59Foss v. Harbottle (1843) 2 Hare 461 276, 281Gamlestaden Fastigheter AB v. Baltic Partners Ltd & Ors (Jersey) [2007] UKPC 26;

[2007] 4 All ER 164; [2007] BCC 272; [2008] 1 BCLC 468 280Gordon v. Holland (1913) 108 LT 385 136Guinness plc v. Saunders [1990] 2 AC 663 269Hely-Hutchinson v. Brayhead Ltd [1968] 1 QB 549 273Henry v. Great Northern Railway Co. (1957) 1 De G & J 1606 170Hickman v. Kent and Romney Marsh Sheep-Breeders Association [1915]

Ch 881 58House of Fraser plc v. ACGE Investments [1987] AC 387 195Howard Smith v. Ampol Petroleum Co. Ltd [1974] AC 821 (PC) 272Hydrodam (Corby) Ltd, Re [1994] 2 BCLC 180 483Kelner v. Baxter (1866) 2CP 174 59, 60Levy v. Abercorris Slate and Slab Co. (1887) 37 Ch D 260 249Lindgren v. L and Pe Estates [1968] Ch 572 480Mosely v. Koffyfontein Mines [1904] 2 Ch 108 250Newborne v. Sensolid (GB) Ltd (1954) 1 QB 45 60Norman v. Theodore Goddard [1991] BCLC 1028 271, 275North West Transportation Co. v. Beatty [1887] 12 AC 589 (PC) 276Oakbank Oil Co. v. Crum [1882] 8 App Cases 65 58O’Neill v. Phillips [1999] 2 BCLC 1 281, 282, 283Pavlides v. Jensen [1956] Ch 565 278Peso Silver Mines Ltd v. Cropper (1996) 58 DLR (2d) 1 273Phonogram v. Lane (1982) QB 938 60Queensland Mines Ltd v. Hudson (1978) 52 AJLR 399 (PC) 273Regal (Hastings) Ltd v. Gulliver [1967] 2 AC 134 272Royal British Bank v. Turquand (1855) 5 E and B 248 270Scottish Insurance Capital Corp. v. Wilson and Clyde Canal Company [1949]

AC 462 171, 195SH & Co. (Realisations) 1990 Ltd, Re [1993] BCC 60; [1993] BCLC 1309 249Smith and Fawcett Ltd, Re [1942] Ch 304 271Smith v. Croft (No.2) [1988] Ch 144; [1986] 1 WLR 580 276, 280Wallensteiner v. Moir (No.2) [1975] QB 373 280Williams v. Natural Life Foods [1998] 1 WLR 830 102

xx T A B L E O F C A S E S






TABLE OF LEGISLATION

EC Law

Treaties

Amsterdam Treaty OJ 1997 C340Protocol 36

EC TreatyArt. 3(g) 24Art. 28 17Art. 43 7, 12–14, 15, 97, 392Art. 43(2) 10Arts. 43–48 10Art. 44 493Art. 44(2)(g) 7, 8, 36Art. 44(3)(a) 391Art. 46 97Art. 47(2) 8Art. 48 12–14, 21, 97, 375, 392, 413Art. 48(1) 10Art. 48(2) 7, 9, 377, 394Art. 54 28, 45Art. 54(3)(f) 395Art. 54(3)(g) 23, 24, 25, 26Art. 56 15Art. 56(1) 14Arts. 56–69 10Art. 58 15Art. 65(b) 35Art. 81 491Art. 95 7, 9Art. 95(1) 8, 9Art. 226 517, 532Art. 234 13, 415Art. 249(2) 9

xxi






Art. 249(3) 36Art. 251 8, 493, 518Art. 293 9, 10, 493Art. 293(3) 9Art. 308 9

Rome Convention on Contractual Obligations 1969 48Art. 6(2) 48

Regulations

2137/85 on the European Economic Interest Grouping, OJ 1985 L199/1 9, 99,167, 377

Preamblerecital 11 390recital 14 390recital 15 390recital 16 380–1, 390recital 17 390

Art. 2 390Art. 2(1) 385Art. 2(2) 382Art. 3(1) 378, 380Art. 3(2) 380–1Art. 4 378, 381Art. 4(1) 387Art. 4(2) 388Art. 4(3) 381Art. 4(4) 381Art. 5 382Art. 6 381Art. 7 382Art. 8 382, 386Art. 9 382–3, 390Art. 9(2) 382Art. 10 381, 382Art. 11 383Art. 12 378, 383, 388Art. 13 383Art. 14 383Art. 14(1) 383Art. 17 384Art. 17(3) 390

xxii T A B L E O F L E G I S L A T I O N






Art. 19 384Art. 20 378, 379Art. 20(1) 385Art. 20(2) 385Art. 21 380Art. 21(2) 385, 386, 390Art. 22 385–6Art. 22(2) 386Art. 24(1) 386Art. 24(2) 386Art. 26 386Art. 27(1) 387, 390Art. 27(2) 387Art. 28(1) 387Art. 29 387Art. 30 387Art. 31 387–8, 389Art. 32 387, 388Art. 32(1) 388Art. 33 387Art. 34 386Art. 35 387Art. 35(1) 388Art. 36 388Art. 37 387Art. 37(1) 386Art. 39(1) 381Art. 40 379, 380

4064/89 OJ 1989 L395/1 451Art. 3(1) 451

1310/97 OJ 1997 L180/1 4511346/2000 Bankruptcy Regulation, OJ 2000 332157/2001 on the Statute for a European company, OJ 2001 L294/1 9, 26, 99, 377, 391Preamblerecital 9 402recital 15 393recital 20 393recital 22 402

Art. 2(1) 393Art. 2(2) 393Art. 2(3) 394Art. 2(4) 394

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Art. 3(2) 394Art. 5 395Art. 6 392, 393Art. 7 392, 401Art. 8 376, 392–3Art. 8(4) 399Art. 8(10) 393Art. 8(13) 393Art. 9 376, 392, 413Art. 10 392Art. 11 392Art. 12(1) 392Art. 12(2) 392Art. 13 395Art. 14(1) 395Art. 23(1) 399Art. 25 497Art. 26 497Art. 32 395Art. 32(6) 399Art. 33 395Art. 34 395Art. 35 395Art. 36 395Art. 37 395Art. 38 396Art. 39(1) 396, 397Art. 39(2) 396Art. 39(3) 396Art. 39(4) 397Art. 39(5) 396Art. 40(1) 396Art. 40(2) 399Art. 41 397Art. 41(1) 396Art. 42(2) 397Art. 43(3) 399Art. 43(4) 396, 397Art. 46 398Art. 47(1) 398Art. 48(1) 398Art. 48(2) 398

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Art. 49 398Art. 50(1) 398Art. 50(3) 398Art. 52 399Art. 53 399Art. 54(1) 399Art. 55 399Art. 56 399–400Art. 57 400Art. 59 399Art. 59(1) 400Art. 61 400Art. 62 400Art. 63 401Art. 64(1) 401Art. 64(2) 401Art. 64(3) 401–2Art. 66(b) 399Art. 69 392Art. 70 495

1606/2002 on the application of international accounting standards, OJ 2002L243/1 25, 400

1435/2003 on the European Cooperative Society, OJ 2003 R2007/1 413Art. 7 413Art. 8 413Art. 59 413

2273/2003 implementing Directive 2003/6/EC as regards exemptions for buy-backprogrammes and stabilisation of financial instruments OJ 2003 L336/33 522, 528

Art. 3 529Art. 4(4) 530Art. 6(1) 529Art. 6(2) 529Art. 6(3) 529

139/2004 on the control of concentration between undertakings OJ 2004 L24/1 491

Directives

68/151/EEC on co-ordination of safeguards which, for the protection of the interests ofmembers and others, are required by Member States of companies within themeaning of the second paragraph of Art. 58 of the Treaty, with a view to makingsuch safeguards equivalent throughout the Community OJ 1968 L65/8 (1stCompany Directive) 21, 22, 23, 52, 395

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Art. 1 45, 494Art. 2 57Art. 3(5) 390Art. 3(7) 390Art. 7 60Art. 9 39Art. 9(1) 42–3, 385Art. 9(2) 39, 42

77/91/EEC on co-ordination of safeguards which, for the protection of the interestsof members and others, are required by Member States of companieswithin the meaning of the second paragraph of Art. 58 of the Treaty, inrespect of the formation of public limited liability companies and themaintenance and alteration of their capital with a view to making suchsafeguards equivalent OJ 1977 L26/1 (2nd Company Directive) 3–4, 21, 22,23, 37, 52, 104

Art. 9 39Art. 10(4) 450Art. 10b(6) 37Art. 15(1)(a) 38Art. 15(1)(b) 38Arts. 18–24 37Art. 19 528Art. 19(1) 231, 232, 239Art. 23 37–8, 192, 246Art. 23(1) 37Arts. 23–39 43–4Art. 24a 37Art. 25 169Art. 29 37–9Art. 29(1) 37–8Art. 29(4) 38–9Art. 32 194Art. 42 487

77/187 on transfers of undertakings OJ 1977 L61/26 418, 44178/660/EEC on annual accounts of certain types of companies, OJ 1978 L221/11

(4th Company Directive) 21, 24, 25, 37, 40, 44–5, 96, 130, 164, 400, 479Art. 57 480

78/855/EEC on mergers of public limited companies, OJ 1878 L295/36 (3rd CompanyDirective) 21, 23, 26, 393, 395, 492–3

Art. 4(1) 494Art. 5 495Art. 7 496

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Art. 7(1)(3) 495Art. 8 495Art. 8(c) 495Art. 9 496Art. 19 498Art. 25(c) 495Art. 27 495Art. 29 451

80/723/EEC on the transparency of financial relations between public enterprises andthe state OJ 1980 L195/35 451

82/89 on the division of public limited liability companies, OJ 1982 L378/47(6th Company Directive) 20, 21, 23

83/349/EEC on consolidated accounts, OJ 1983 L193/1 (7th CompanyDirective) 21, 24, 25, 32–3, 37, 40, 96, 164, 400, 479, 480

Art. 1 45, 450, 474Art. 1(1)(d) 475Art. 20(1) 44–5

84/253/EEC on the approval of persons responsible for carrying out the statutoryaudits of accounting documents, OJ 1984 L126/20 (8th CompanyDirective) 25, 37, 400

85/611/EEC 2886/635/EEC 2488/627/EEC on the information to be published when a major holding

in a listed company is acquired or disposed of, OJ 1988L348/62 28

89/592/EEC on insider dealing OJ 1989 L334/30 6, 21, 28, 518, 519, 521Art. 2 521Art. 2(4) 519Art. 3(a) 523Art. 3(b) 523Art. 7 521

89/666/EEC on disclosure requirements in respect of branches opened in a MemberState by certain types of companies governed by the law of another State, OJ1989 L395/36 (11th Company Directive) 21, 25–6

89/667/EEC on single-member private limited liability companies, OJ 1989 L395/4082(12th Company Directive) 26, 42

90/435 on the common system of taxation of parent companies and subsidiaries indifferent members states 451

90/604/EEC amending Directive 78/660/EEC and Directive 83/349/EEC as concernsthe exemptions for small and medium sized companies and the publication ofaccounts in ecus, OJ 1990 L317/57 24

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90/605/EEC amending Directive 78/660/EEC and Directive 93/349/EEC as regards thescope of those directives, OJ 1990 L317/60 24, 130, 164

91/674/EEC on the annual accounts and consolidated accounts of insuranceundertakings, OJ 1991 L374/7 24, 401

92/22/EEC on investment services in the securities field, OJ 1993 L141/27 28Art. 7(13) 519

92/101/EEC amending Directive 77/91/EEC on the formation of public limitedcompanies and the maintenance of and alteration of their capital, OJ 1992L374/64 37

93/6/EEC 2893/22/EEC on investment services in the securities field, OJ 1993 L141/27 2894/45/EC on the establishment of a European Works Council or a procedure in

Community-scale undertakings and Community-scale groups of undertakingsfor the purposes of informing and consulting employees, OJ 1994 L254/64 28,410, 418, 442, 504, 513

Art. 2(1)(b) 443Art. 3 443Art. 4 445Art. 4(1) 443Art. 5(5) 404, 444Art. 6 443Art. 6(2) 443Art. 7 444Art. 8 418, 446Art. 8(1) 444Art. 8(2) 444Art. 10 444, 446Art. 11(4) 444

97/74/EC OJ 1998 L10/2 410, 442, 50498/59/EC on collective redundancies, OJ 1998 L225/16 440, 503, 513Art. 2(1) 441Art. 2(3) 441Art. 3(1) 441Art. 4(1) 441

2000/12/EC on the taking up and pursuit of the business of credit institutions, OJ 2000L126/1 28, 401

2001/23/EC on transfers of undertakings OJ 2001 L82/16 418, 440, 441, 503Art. 1(1) 441Art. 5 441Art. 7 442

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2001/34/EC on the admission of securities to official stock exchange listing and oninformation to be published on those securities, OJ 2001 L184/1 28

2001/51 OJ 2003 L 179/16 4002001/65/EC amending Directives 78/660/EEC, 83/349/EEC and 86/635/EEC as regards

the valuation rules for the annual and consolidated accounts of certain types ofcompanies as well as of banks and otherfinancial institutions,OJ 2001 L283/28 24

2001/86/EC supplementing the Statute of the European Company with regard to theinvolvement of employees, OJ 2001 L294/22 26, 99, 377, 391, 397, 398, 399,499, 513

Preamblerecital 3 402recital 4 402

Art. 1(1) 402Art. 1(2) 402Art. 2(d) 403Art. 2(k) 404Art. 3 402Art. 3(1) 403Art. 3(2) 403Art. 3(3) 403Art. 3(4) 404, 502Art. 3(5) 404Art. 3(6) 403, 404, 406, 410Art. 3(7) 404Art. 3(a)(1) 501Art. 4 402Art. 4(1) 405Art. 4(2)(b) 409Art. 4(3) 405Art. 4(4) 405Art. 5 402, 405, 406Art. 6 402, 405Art. 7 402Art. 7(1) 501Art. 7(2)(b) 406, 503Art. 7(3) 405–6Art. 8(2) 408Art. 8(4) 409Art. 10 409Art. 12 409Art. 13 409–10Art. 14 410

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Art. 15 410Art. 16 410

2002/14/EC establishing a general framework for informing and consulting employeesin the European Community OJ 2002 L80/29 47, 504

2003/6/EC on market abuse OJ 2003 L96/16 3, 6, 28, 516Preamblerecital 15 518recital 16 520recital 17 520recital 22 525recital 24 529–30recital 26 530recital 31 520recital 36 531recital 44 525

Art. 1 518Art. 1(1) 520, 521Art. 1(2) 516, 524–6Art. 1(3) 519, 533Art. 1(4) 519Art. 2 521Art. 2(1) 520Art. 3 522Art. 4 521Art. 6 522Art. 6(1) 521Art. 6(2) 528, 529Art. 6(3) 519, 523–4, 530Art. 6(4) 530Art. 6(5) 526Art. 6(6) 530Art. 6(9) 524Art. 7 519Art. 8 528, 529Art. 10 533Art. 10(1) 533Art. 11 530Art. 12 531, 535Art. 13 531Art. 14(1) 531Art. 16 535Art. 20 518

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2003/38/EC amending Directive 78/660/EEC as regards amounts expressed in euros,OJ 2003 L120/22 24

2003/51/EC amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC and91/674/EEC, OJ 2003 L178/16 24, 401

2003/58/EC, OJ L220/13 222003/124/EC Definition and Disclosure Directive, OJ 2003, L339/70 518, 522Art. 3(1)(9) 523

2003/125/EC on the fair representation of investment recommendations and thedisclosure of conflicts of interest OJ 2003 L339/73–7 522, 525

Art. 2 526Art. 3 526Art. 4(1) 527Art. 5 526Art. 6(3) 527Art. 6(4) 527Art. 7 527Art. 8 527–8Art. 9 527

2004/25/EC on takeover bids (13th Company Directive), OJ 2004 L142/12 3, 491,506–15

Art. 3 508, 513, 514Art. 3(1) 505Art. 4 513Art. 4(2) 505Art. 4(5) 514Art. 5 490, 505, 512Art. 6 505, 513Art. 6(10) 509Art. 7 505, 513Art. 7(1) 508Art. 8 505, 513Art. 9 505, 506, 507, 508Art. 9(2) 27, 508Art. 9(3) 27, 508Art. 10 506Art. 11 506, 507, 510Art. 11(4) 508, 509Art. 12 509Art. 12(3) 506–7, 514Art. 12(5) 509Art. 13 505Art. 13(3) 507

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