The 'Societas Europaea': A Network Economics Approach
37 Pages Posted: 18 May 2004
There are 2 versions of this paper
The 'Societas Europaea': A Network Economics Approach
The Societas Europaea: A Network Economics Approach
Date Written: January 2004
Abstract
This article applies network economics to a particular aspect of the statute of the Societas Europaea (SE). The statute allows companies that decide to use the SE form to choose between a two-tier organisational structure (supervisory organ and management organ) and a one-tier organisational structure (administrative organ). By applying the theory of network economics to company law, the article firstly shows that path dependency may arise in the choice of the adopted structure on the basis of the past national regulation. Secondly, the article shows that to overcome this path dependency the incorporation theory would be superior to the real seat theory as provided for by the statute of the SE.
Keywords: European Company statute, Company Law, board structure, path dependency, renvoi technique, company's freedom of establishment, real seat theory, incorporation theory, agency costs, contract law, network economics
JEL Classification: G3, K22
Suggested Citation: Suggested Citation
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