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The Czech Societas Europaea Puzzle

20 Pages Posted: 7 Dec 2011 Last revised: 12 Jan 2012

Horst Eidenmueller

University of Oxford; European Corporate Governance Institute (ECGI)

Jan Lasak

Masaryk University - Faculty of Law

Date Written: December 7, 2011

Abstract

The European Company (Societas Europaea, SE) has become a popular company law form for businesses, and it is most popular in the Czech Republic, which is puzzling. We study the motives of Czech SE founders on the basis of data from the Czech national Commercial Register on all Czech SEs registered in 2010 and 88 interviews with Czech SE users. SE incorporations in the Czech Republic are mainly driven by the desire to economize on board size and the positive European image of the SE (brand management). The large number of Czech shelf SEs probably results either from service providers overestimating these advantages and, as a consequence, demand for new SEs or, conversely, from users underestimating the beneficial effects of (re-) incorporating as an SE. Time will tell which conjecture comes closer to the truth.

Keywords: European company, societas Europaea, Czech Republic, legal arbitrage

Suggested Citation

Eidenmueller, Horst and Lasak, Jan, The Czech Societas Europaea Puzzle (December 7, 2011). ECGI - Law Working Paper No. 183/2011. Available at SSRN: https://ssrn.com/abstract=1969215 or http://dx.doi.org/10.2139/ssrn.1969215

Horst G. M. Eidenmueller (Contact Author)

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

European Corporate Governance Institute (ECGI) ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Jan Lasak

Masaryk University - Faculty of Law ( email )

Veveri 70
Brno, 61180
Czech Republic

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