European Company (Societas Europaea). the abbreviation SE, is a type of joint stock company established by European law (Council Regulation No ES/2157/2001 of October 8, 2001). Capital of the company is divided into a number of shares of a certain value. It is therefore a so-called capital company.
European company allows for business in all Member States of the European Union. The fact that the company is based on the European law, it overcomes obstacles and legislative differences between Member States.
- Capital of the European Company (SE) is the amount of 120.000 EUR. It is divided into shares, each shareholder is liable for the obligations of the company to the amount of the subscribed capital.
- For the European Company the laws of the Member State in which the company has its headquarters applies.
- European Company must contain the SE appendix
- The advantage of the company is its smooth transfer to any Member State of the European Union.
Statutes of European Company are derived from how the founders decide between monistic or dualistic model of departments organization:
- Monistic (Anglo-Saxon) structure (single-tier system) is very simple - the head of the company is board, which embodies the management and supervisory board (Administrative Board)
- Dualistic (continental) structure (two-tier system) - divides the authorities in the following way:
- Management Board
- Supervisory Board
Both systems must be governed by the general meeting of shareholders.
European Company in practice: European Company can be used as an excellent type of joint stock companies, for companies that operate in several countries of the European Union.