eeig european economic interest groupings mondorf-les-bains, luxembourg, 18th november 1999 dr lars...

EEIGEuropean Economic Interest

Groupings

Mondorf-les-Bains, Luxembourg, 18th November 1999

Dr Lars Karlsson Hippopotamos Education Vienna and Lund University

Dr Lars Karlsson, Nov 1999

WHAT IS THE EEIG?

The EEIG is: • the only legal vehicle for co-operation, directly connected with the Community system,

WHAT IS THE EEIG?

The EEIG is: • the only legal vehicle for co-operation, directly connected with the Community system,• the first attempt by the EU towards an EU company (but it is not a company)

WHAT IS THE EEIG?

The EEIG is: • the only legal vehicle for co-operation, directly connected with the Community system,• the first attempt by the EU towards an EU company (but it is not a company)• a key element in European co-operation, particularly for SMEs wishing to participate in European-scale projects.(app. 1000 groupings in a wide range of sectors)

WHAT CAN EEIG DO?

• An EEIG can do most things related to the economic activity of its members

WHAT CAN EEIG DO?

• It must though be ancillary to the economic activity of its members

WHAT CAN EEIG DO?

• It must though be ancillary to the economic activity of its members

• The concept of "economic activity" is very flexible

WHAT CAN AN EEIG NOT DO?

An EEIG cannot:

• hold shares in any of its members

An EEIG cannot:

• hold shares in any of its members• be a member of another EEIG

An EEIG cannot:

• hold shares in any of its members• be a member of another EEIG• employ more than 500 persons

An EEIG cannot:

• hold shares in any of its members• be a member of another EEIG• employ more than 500 persons• be used to make loans to a company director or any person connected with him where that would be restricted or controlled by national law

WHAT ARE THE ADVANTAGES OF AN EEIG?

• Legal capacity

• Right to conclude contracts and take legal actions

• Legal capacity

• Tax transparency

• Legal capacity

• Tax transparency

• Flexibility regarding the method of financing

WHAT IS NOT SO GOOD?

• Unlimited joint and several liability of the members.

• Each member can individually be held liable for the EEIG activities

• No funds from the public

•No shares in another EEIG

HOW IS AN EEIG STRUCTURED?

• An EEIG is set up in much the same way as a normal company

• At least two bodies must request its formation.

• The members appoint managers to operate the EEIG on a day-to-day basis

WHO MAY BE A MEMBER OF AN EEIG?

• Membership of an EEIG is open to most persons and organisations within the Community

• The members do not have to be a company.

• The members should have been engaged in an "economic activity" in the EU before becoming a member of the EEIG.

IS THERE A NATIONALITY REQUIREMENT?

• An EEIG must have at least two members based in different EU Member States.

• Companies, firms and other legal bodies must- have been formed according to the law of one of the Member States

• Companies, firms and other legal bodies must- have been formed according to the law of one of the Member States - have the central administration (i.e. place of central management and control)

• Companies, firms and other legal bodies must- have been formed according to the law of one of the Member States - have the central administration (i.e. place of central management and control)- and their registered or statutory office - where this is required – within the EU

• Individuals may become members if they: carry on a economic activity within the EU i.e. any industrial, commercial, craft or agricultural activity, or provide professional or other services in the EU.

• Organisations from non-EU countries may not become members.

THE ROLE OF THE MEMBERS

• The members decide how the EEIG will be run.

• Each member has at least one vote.

•The members decide how the EEIG will be run.

• The members are free to decide the voting procedures to be set down in the contract of formation except for certain exceptions

• An unanimous decision is required for fundamental decisions affecting the existence and operation of the EEIG

THE ROLE OF THE MANAGERS?

• The members appoint at least one manager who runs the EEIG and makes normal daily decisions.

• The members decide the powers of the managers.

• The members appoint at least one managers who runs the EEIG and make normal daily decisions.

• The members decide the powers of the managers.

• The actions of the managers are binding on the EEIG and the members are jointly liable for those actions.

HOW IS AN EEIG FUNDED?

• No formal capital requirements for an EEIG

• Contribution may also be in services and skills

• EEIGs may not seek investment from the public

WHAT TAXATION RULES APPLY TO EEIGS?

Fiscal transparency:

Profits, losses or gains are shared between the members according to their shares.

The members are taxed for these in the normal way according to the national rules and laws.

The EEIG must register for VAT if passing the registration limits

NATIONAL LEGAL PROVISIONS

The EU regulation requires or permits Member States to make certain provisions for EEIGs under national law. As a result there are some differences in the implementing legislation in areas such as:

The EU regulation requires or permits Member States to make certain provisions for EEIGs under national law. As a result there are some differences in implementing legislation in areas such as:

• legal capacity• the managers and • auditing requirements.

ANNUAL ACCOUNTS IN EURO

It has been recommended that, parallel to the official accounts, kept in the currency of the country of residence of the EEIG, the EEIG’s accounts and financialreports should be drawn up in EURO.

REGISTRATION OF AN EEIG

An EEIG must be registered in one of the EU Member States.

The Grouping's official address will determine in which State this will be. This official address must be either where:

the EEIG has its central administration,orone of its members has its central administration, provided that the EEIG carries on an activity there.

PUBLICITY

The establishment and ending of an EEIG must be advertised in the official journal of the country where it is registered and in the Official Journal of the European Communities

WHAT NAME CAN THE GROUPINGS BE GIVEN?

The name of an EEIGs must include either "European Economic Interest Grouping" or "EEIG" in their name.

THE EEIG FORMATION CONTRACT MUST INCLUDE

• The full name and official address of the grouping

• The objectives for which the grouping was formed;

• The details of each member: name/business names/legal form,, permanent address or also registered office, number, and place of registration (if any)

• The duration of the EEIG, if this is limited.

THE REGIE NETWORK: EUROPEAN NETWORK OF EEIGS

The objectives of the REGIE initiative are to:

• provide a genuine information service, in particular for SMEs, by answering practical questions about the setting up and development of EEIGs

The objectives of the REGIE initiative are to:

• provide a genuine information service, in particular for SMEs, by answering practical questions about the setting up and development of EEIGs

• draw up a review of different EEIG practices and methods of use

• organise a regular conference for EEIGs and all other persons interested in this co-operationinstrument

• organise a regular conference for EEIGs and all other persons interested in this cooperationinstrument

• maintain the REGIE database which surveys all EEIGs whose formation has been published in the Official Journal of the European Communities.

HOW TO CONTACT REGIESince there is no direct access to the REGIE database, any person interested is invited to contact:

European CommissionMr R. Schulte-BraucksHead of UnitDG XXIII/A/1rue de la Loi 200 - AN 80 03/76B-1049 BruxellesFax: +32 2 295 9784

An Internet presentation of the REGIE initiative can be accessed at the following address:

http://europa.eu.int/en/comm/dg23/index.htm.

EC Services and Support networks – Interesting Sites

Innovation support networkshttp://www.cordis.lu/innovation-smes/src/suppnet.htm

SME network of National Contact Points http://www.cordis.lu/sme/src/sme-ncps.htm

Innovation-SMEs Contacts http://www.cordis.lu/innovation-smes/src/contact.htm

Innovation Relay Centreshttp://www.cordis.lu/irc/home.html

http://www.cordis.lu/innovation-smes/src/suppnet.htm

EC Services and Support networks – Interesting Sites (2)

Technology implementation planshttp://www.cordis.lu/fp5/tip.htm

Sustainable Growth National contact pointshttp://www.cordis.lu/growth/src/ncps.htm

The IPR help desk http://www.cordis.lu/ipr-helpdesk/en/home.html

http://www.cordis.lu/innovation-smes/src/suppnet.htm

"Financing Innovation"http://www.cordis.lu/finance/home.html

The schemes for rating technological riskhttp://www.cordis.lu/finance/src/techrate.htm

EC-supported venture capital and other financing schemes http://www.cordis.lu/finance/src/schemes.htm

The LIFT scheme for free advice on business opportunities and business planshttp://www.cordis.lu/lift/home.html

http://www.cordis.lu/finance/home.html

http://www.e-gateway.net

"e-gateway" An e-commerce awareness site, where you can register your ecommerce product/solution free

http://www.e-gateway.net

"e-gateway" An e-commerce awareness site, where you can register your ecommerce product/solution free

http://www.prosoma.lu

Prosoma, where they promote IST research results to potential partners/exploiters

Dialogue with Business

http://europa.eu.int/business

Euro Info Centres (EICs)

http://europa.eu.int/business/en/advice/eics/index.html

Enterprise Policy, Distributive Trades, Tourism and Social Economy http://europa.eu int/comm/dg23

Business Co-operation Network (business planning, strategic advice on likelihood of international success, profiling, partner searchhttp://europa.eu.int/comm/dg23/bus_cooperation/cooper_net/bc-net.html

BRE: Bureau de Rapprochement des Entreprises (announces opportunities to interested parties)http://europa.eu.int/comm/dg23/bus_cooperation/cooper_net/bre.html

http://www2.echo.lu/info2000/midas

MidasNet (multimedia information, demonstration and support network)

http://www.enterweb.org

ENTERWeb The Enterprise Development Website

http://inf2.pira.co.uk/heritage.html

The Cambridge Management Group site for information on European funding for cultural heritage

eeig european economic interest groupings mondorf-les-bains, luxembourg, 18th november 1999 dr lars...

eeig slide

eeig european economic

legal capacity slide

flexible slide

lund university slide

method of financing

national law slide

legal vehicle

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