On 19 November 2010 the European Commission published a report to the European Parliament and the Council on the application of the Regulation on the Statute for a European Company (Societas Europaea or SE), as required under the terms of the Regulation. The report is based on the results of an external study and of public consultations in writing and at a conference (see Legal update, Commission review of the European Company Statute: summary of responses received). The report notes that, as at 25 June 2010, 595 SEs had been registered, including 23 in the UK. The report concludes that there are a number of positive factors which influence setting up an SE, including the European image and supra-national character of an SE; the fact that the SE is the only company form that allows companies to transfer their registered office to any other Member State without liquidation; and the SE's potential for reorganising and simplifying group structures. However it is acknowledged that the application of the Regulation poses a number of problems. When establishing an SE, the problems include set-up costs; time-consuming and complex procedures; the Regulation does not result in a uniform SE legal form across the European Union; the Regulation contains multiple references to national law so there is uncertainty as to the legal implications of the Regulation's directly applicable rules and their interface with national law; and a lack of practical experience of advisers and competent public authorities. Insufficient awareness about the SE among the business community is reported as the most significant problem in the running of the SE, along with the rules on employee involvement and the requirement that the registered office and the head office of an SE must be located in the same Member State.

The Commission states that it is currently considering possible amendments to the Regulation, with a view to making proposals in 2012, if appropriate. It notes that any such amendments would need to be carried out in parallel with any possible revision of the SE Directive (2001/86/EC), which would be subject to the consultation of social partners in accordance with Article 154 of the Treaty.

Source: Report from the Commission to the European Parliament and the Council: the application of Council Regulation 2157/2001 of 8 October 2001 on the Statute for a European Company and accompanying Commission Staff working document.

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