The 'Societas Europaea': A Network Economics Approach

37 Pages Posted: 18 May 2004

See all articles by Piero Pasotti

Piero Pasotti

University of Bologna - Department of Economics

Stefano Lombardo

Free University of Bozen-Bolzano - CRELE Center for Research in Law and Economics; Free University of Bozen-Bolzano - Faculty of Economics and Management

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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

Pasotti, Piero and Lombardo, Stefano, The 'Societas Europaea': A Network Economics Approach (January 2004). ECGI - Law Working Paper No. 19/2004. Available at SSRN: https://ssrn.com/abstract=493422 or http://dx.doi.org/10.2139/ssrn.493422

Piero Pasotti

University of Bologna - Department of Economics ( email )

Piazza Scaravilli, 2
Bologna, Bo 40126
Italy

HOME PAGE: http://sites.google.com/site/pieropasottiswebpage/

Stefano Lombardo (Contact Author)

Free University of Bozen-Bolzano - CRELE Center for Research in Law and Economics ( email )

Free University of Bolzano
Piazza Universita
Bolzano, BZ 39100
Italy

Free University of Bozen-Bolzano - Faculty of Economics and Management

Piazza Universita
Bolzano-Bozen (BZ), 39100
Italy
+39 0471 013491 (Phone)

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