Today, the European Commission is proposing new company law rules to make it easier for companies to merge, divide or move within the Single Market. The new rules will also ensure that employees’ rights are well protected and tax abuse is prevented.
The rules will stimulate the growth potential of European companies by digitalising the process of setting-up and running a business. First Vice-President Frans Timmermans said: “In our thriving EU Single Market, companies have the freedom to move and grow. But this needs to happen in a fair way. Today’s proposal puts in place clear procedures for companies, with strong safeguards to protect employees’ rights and, for the first time, to prevent artificial arrangements aiming at tax avoidance and other abuses”. Commissioner for Justice, Consumers & Gender Equality policy, Vera Jourová said: “Too often, European companies are prevented from looking for business opportunities abroad. I want to change this and modernise the company law rules. First, I want more online solutions for European businesses so that they cut costs and save time. Second, I want to offer the honest entrepreneurs the choice of where to do business and how to grow or reorganise their businesses.” This Company Law proposal was first announced in the Commission’s 2017 Work Programme and part of the Commission’s Digital Single Market Strategy. More information can be found in this press release and memo. First Vice-President Timmermans and Commissioner Jourová will give a press conference on Wednesday 25 April around 13:00, which can be followed here.