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European Community (Company Law)

Volume 892: debated on Tuesday 13 May 1975

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asked the Lord Advocate if he will make a statement on the new framework of company law in the EEC published on 5th May 1975 which would permit companies having plants in more than one member State to operate under a single system of law; and if he will take steps to protect the jurisdiction of Scots law in this regard.

I understand that the proposed European Company statute would make available a new legal form of company incorporated under Community law. It is designed to encourage cross-frontier co-operation between companies and could be used only where two or more existing companies incorporated under and subject to the national law of two different member States formed a European company either by merger or by the creation of a joint holding or subsidiary company.The proposal, which is at present in the form of a draft regulation, was submitted by the EEC Commission to the Council of Ministers on 5th May 1975 and has still to undergo full examination and discussion by the member States. In this examination and discussion the interests of Scots law will be carefully kept in mind, although in this connection it should be emphasised that only companies which choose to incorporate as European companies will be subject to the framework of law contained in the draft statute. It will have no application to companies incorporated under national law.