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

19 Pages Posted: 18 Apr 2005  

Udo C. Braendle

American University in Dubai

Juergen Noll

University of Vienna - Department for Business Studies

Date Written: April 15, 2005

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.

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

JEL Classification: G34, K22, K33

Suggested Citation

Braendle, Udo C. and Noll, Juergen, The Societas Europaea - A Step Towards Convergence of Corporate Governance Systems? (April 15, 2005). Available at SSRN: https://ssrn.com/abstract=704881 or http://dx.doi.org/10.2139/ssrn.704881

Udo C. Braendle (Contact Author)

American University in Dubai ( email )

Dubai, UAE 28282
United Arab Emirates

Juergen Noll

University of Vienna - Department for Business Studies ( email )

Bruenner Strasse 72
Vienna, A1210
Austria
+43 1 42 77 38 105 (Phone)
+43 1 42 77 38 104 (Fax)

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