Brussels, 03/02/2012 (Agence Europe) - Any limited company should be allowed to transfer its headquarters to another country in the EU after consulting its staff, getting the approval of shareholders and meeting EU tax laws. Approving a report by Austrian Socialist Evelyn Regner on Thursday 2 February, which makes a recommendation in this connection, the European Parliament asked the Commission to prepare a directive to this end and solve the tricky issue of companies having their headquarters for tax purposes in one country and their operating headquarters in another (which causes problems in the event of bankruptcy, for example).
The EP recommends that the directive should guarantee limited companies the right to move headquarters and set up in a different member state without losing registration of the company, as long as this is not used to wriggle out of legal, social and tax obligations and as long as the company pays the cost of the move. The move must be fiscally neutral and take place on the same day as the company is registered in the new host state, from which day the company will be covered by the new country's legislation as long as it meets equivalent worker representation requirements as in the original country. Before the move, management must provide the board and worker representatives with a report on the economic, social and legal aspects of the planned move, explaining the impact for shareholders, lenders and workers, and a practical move plan giving detailed information about legal issues, timing and other aspects of the move plans. (FG/transl.fl)