Disadvantages Of The Societas Europee

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2. Advantages of the Societas Europeae
The SE structure was designed to approach the companies in Europe and to enforce the trade within the EU area. This act of using the statute as a national law, argues the vital interest in a workforce focused on harmonization of the corporate governance, establishing a stable economy for stake holders and multinational companies.
In Between the difficulties to harmonize the interests of management and employees it had shown the efficiency to increase the numbers of SE companies registered during the years that it has been applied as a national law of the member parties.
The abolishment of national restrictions and the prohibition of discrimination must not be considered as diminishing the rights or freedoms
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Article 8 of the Regulation provides that when the management proposes to transfer the registered office of the SE, the proposal must include a report which justifies the legal and economic aspects of the transfer and explains the implications for the shareholders, creditors and the employees. The decision to transfer must be approved by the qualified majority of the General Assembly. The minority shareholders have the possibility to ask for the repurchase of their shares if the MS’ legislation permits this, (France and Germany allow the repurchase of shares; the UK and the Netherlands do not allow such an…show more content…
Therefore, 3the formation of an SE can be useful to companies in the course of a transaction as they can perform a "merger-of-equals" in order to overcome psychological and cultural barriers and to form a common Corporate Identity.
Furthermore, the companies have the option to choose the one-tier and two-tier system, 4the choice between a one-tier and a two-tier system enhances the flexibility and eases the integration into existing Anglo-Saxon corporate structures.
By implementing a legal framework where previously there was none, the 2001 Regulation encourages the undertaking of cross-border mergers (by takeover or by formation of a new company) within the European Community. As a result of the wording of the Regulation, grey areas exist in relation to the opportunities for existing SEs to take advantage of each of the two methods. 5
The statute does not regulate taxation within the internal Market, nevertheless the companies are taxed equality with the domestic companies, principle adopted to facilitate the tax concerns of the

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