Cooperatives Europe has welcomed plans for a new legal business structure which would operate across the European Union.
On 19 March, the European Commission unveiled its proposals for EU Inc, an optional company form designed to facilitate the growth and scalability of businesses across Europe through a harmonised set of EU-wide rules.
The proposal addresses key areas such as digital registration, attracting talent, access to capital, and legal certainty.
Originally referred to as the 28th regime for innovative companies, EU Inc offers entrepreneurs the option of opting into the newcompany form, or with the 27 national company legal forms which sit alongside it.
Under the proposals, co-operatives registered in any member state that opt for the EU Inc form could benefit from consistent rules and requirements throughout the EU.
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“The EU Inc proposal should serve as a tool to enable enterprises, including co-operatives, to expand their activities beyond national border. It should promote greater diversity within the Single Market,” said Giuseppe Guerini, president of Cooperatives Europe.
Cooperatives Europe said the initiative could wth the persistent challenges co-ops face in operating, growing, and expanding within the Single Market.
“Our priority is to ensure that the EU Inc regime is open to all European companies,” it added, “regardless of the sector, size or the legal form. Our objective is to create a level playing field for co-operative startups wishing to adopt this model, acknowledging the diversity of business models (a principle recognised by the funding treaty of the EU) and compatible with co-operatives’ specific characteristics, regulations and principles.”
The apex said it wants the registration process to take into account specific co-operative registers already in place in many member states. Measures on access to finance should consider co-operatives’ distinct governance structures and certain restrictions on share transfer, it added.
“We also urge the co-legislators to explore innovative governance mechanisms and diverse ownership structures in businesses, including the cooperative approach, to attract talents,” it said.
“To achieve a genuine level playing field, it is essential for member states to act with ambition and to thrive towards maximum level of harmonisation.
“This will prevent fragmented transposition or uneven treatment across member states. While much remains to be covered and analysed, Cooperatives Europe will work in collaboration with experts and its members to develop detailed recommendations on this proposal in the coming months.”
