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Company law

Internal market

Companies are key operators in the internal market. Company law aims to improve their operating efficiency via a simplified legal environment with minimum red tape. European legislation in this field relates in particular to national and international mergers and divisions of companies, the rights of shareholders of listed companies and the tax arrangements for parent companies and subsidiaries of different Member States. The possibility to engage in activities in a Member State other than that of the registered office and the introduction of effective cross-border cooperation seem to be key developments. In the context of completing the internal market, the concept was devised of the "European company", which is better suited to the dimensions of enterprises established in several Member States, since it is governed by European law and no longer subject to different legislative systems simultaneously. The statute for the "European cooperative company" also allows cooperatives to develop their business on a European scale. European enterprises not wishing to merge or set up subsidiaries also have a transnational cooperation instrument at their disposal, known as the European Economic Interest Grouping (EEIG).

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