The European Company Statute 2001 allows a European Company or Societas Europaea (SE) to be established within the European Union. It was implemented in the UK in 2004. The statute provides an alternative form for the incorporation of a company to those made available by the national law of member states and is designed to encourage cross-border mergers. It is relevant to the field of HRM because of an accompanying Directive on Employee Involvement in the European Company. The most significant element of the latter is a requirement that there should be board-level worker participation in a European Company where one or more of the companies merging to form the SE were subject to codetermination arrangements under its national law. Without this requirement, it was feared that European Companies would be created with the express purpose of escaping national legislation that mandated board-level worker representation.
Subjects: Human Resource Management.