The Societas Europaea - A Step Towards Convergence of Corporate Governance Systems?

Abstract:     
Since October 2004, the idea of a European Company, the Societas Europaea, has become reality and companies are allowed to incorporate in this legal form. Concerning corporate governance, the Statute allows the companies to choose between a two-tier organizational structure typical for Civil Law countries and a one-tier organizational structure which is predominant in Anglo-Saxon Common Law countries. By analyzing the regulations of Austria and the United Kingdom for the two board systems to elaborate the respective advantages and pitfalls, we find a strong evolution of the systems towards each other. As the board system is an integral component of a corporate governance system, the Societas Europaea highlights a major step towards convergence of these systems.

Number of Pages in PDF File: 19

Keywords: Corporate governance, societas europaea, United Kingdom, Austria, board systems, convergence

JEL Classification: G34, K22, K33

working papers series