While the European Parliament’s Committee on Legal Affairs (JURI) is hoping for a committee vote on 8 October, followed later the same month by a vote at the second plenary session, on the draft Regulation on the 28 th regime for European companies and the creation of EU Inc., the negotiators on the text led by René Repasi (S&D, German) have made progress on an initial draft of compromise amendments.
Seen by Agence Europe, the document, dated 1 September, resumes the modification to the scope of the Regulation sought by the rapporteur, which provides for covering two categories of companies: a new harmonised legal form of limited liability company (EU Inc.) provided for under the law of each Member State, and a new legal form for steward-owned companies, sometimes referred to as “responsible ownership”, that is to say, a company whose governance places the social or environmental mission ahead of short-term financial profit.
The other Groups, such as ECR or the Greens/EFA Group, have also made slight amendments to the task of the competent authorities as regards scrutiny of the legality of these new companies, which can be created within 48 hours, for example by ensuring that “Union and national requirements relating to anti-money laundering are met”.
“By way of exception, where additional checks are required because of a higher risk of fraud or abuse, in particular money laundering, the period (...) (two working days) may be extended by the time strictly necessary to carry out those checks”, the ECR, EPP, Greens/EFA and The Left Groups added.
Where an EU company (EU Inc.) operates under an employee protection system, it is required to take measures to ensure that employees’ participation rights are protected, in the event of conversion into a national limited liability company, for a period of at least four years after the conversion takes effect, according to another amendment by the rapporteur and The Left.
The company “may establish an EU employee stock option plan under which it issues warrants to eligible persons. Participation in such a plan is voluntary for employees and shall be without prejudice to national law and collective agreements regarding all components of remuneration, including pensions and social security contributions”, according to another amendment by The Left, S&D, the Greens/EFA, and Renew Europe.
A stock option plan may not be used as a substitute for ordinary remuneration, the statutory minimum wage or pay levels established by collective agreements. Such schemes must be treated as a supplement to, and not a replacement for, cash-based wages and social security contributions, according to another addition by the rapporteur, S&D, the Greens/EFA, and The Left.
For its part, the Council of the EU carried out a fresh examination of the first draft compromise on 1 September. Two working parties will follow on 10 and 17 September, to be followed by a policy debate scheduled for 24 September at the level of the competent Ministers of the EU27.
Link to the document: https://aeur.eu/f/n7q (Original version in French by Solenn Paulic)