|Author (Corporate)||Council of the European Union|
|Series Title||Official Journal of the European Union|
|Series Details||L 165, Pages 25-26|
Regulation (EU) 2020/699 - adopted by the Council of the European Union on 25 May 2020 - introducing temporary measures concerning the general meetings of European companies (SEs) and European Cooperative Societies (SCEs). This is a text with EEA Relevance.
Council Regulation (EC) No 2157/2001 and Council Regulation (EC) No 1435/2003 provide rules for the setting-up and operation of the European companies (SEs) and European Cooperative Societies (SCEs). Both Regulations also harmonise the deadline for holding the general meeting.
The COVID-19 (coronavirus) pandemic has had a serious impact on companies and cooperative societies. Due to the confinement and social distancing measures, as well as to the need to concentrate efforts on managing the economic activity constraints, SEs and SCEs have faced difficulties to respect the deadline to hold their general meeting.
The holding of general meetings is of essential importance to ensure that legally required or economically necessary decisions having impact on the company itself, its shareholders and third parties are taken in due time. Reflecting the exceptional circumstances caused by the pandemic, the present Regulations sets at EU level a temporary derogation to the deadline provided for in Article 54 of both SE and SCE Regulations. It provides the flexibility to held their general meeting within 12 months of the end of the financial year, but in any case no later 31 December 2020.
The proposal was adopted by the European Commission on 29 April 2020. The European Parliament provided the consent on 14 May. The Council of the European Union adopted the initiative on 25 May. The Act was published in the Official Journal on 27 May 2020.
|Subject Categories||Business and Industry, Law|
|Subject Tags||Company | Corporate Law|
|International Organisations||European Union [EU]|