ALDE welcomes final green light to greater cross-border mobility of EU companies

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Today, Members of the European Parliament gave their final green light to an agreement reached on cross-border conversions, mergers and divisions of companies. The purpose of the new EU rules is to enable businesses to move across the EU while providing strengthened protection for employees, creditors and minority shareholders.

The new legal framework offers to companies the possibility to move from one member state to another while keeping their legal personality, divide cross-border through the formation of new companies and aligns the already existing rules on cross-border mergers. It will simplify administrative procedures, draw up predictable legal mechanisms and will ensure that abuses and fraud are effectively prevented.

Jens Rohde, Shadow Rapporteur on this file, commented:

“A dynamic single market with strong protection of employees and safeguards against abuse is much needed in Europe.”

“We need a Europe with better balance, so that companies can get the entire advantages of a single market. But we also have to stop abusive and fraudulent behaviour and forum shopping with the purpose of avoiding taxes and circumvention of employers’ rights.”

“With these new rules, we are taking an important step towards both better regulation for converting, merging and dividing companies and for the protection of employees.”

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