Optional Rather than Mandatory EU Company Law: Framework and Specific Proposals

22 Pages Posted: 6 Apr 2007 Last revised: 21 Mar 2008

See all articles by Gerard Hertig

Gerard Hertig

ETH Zurich; European Corporate Governance Institute (ECGI)

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC); Tilburg Law and Economics Center (TILEC); European Corporate Governance Institute (ECGI)

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Abstract

A significant debate rages within the EU about whether to give firms the choice to opt in or out of corporate law provisions. Both sides agree that more flexibility and adaptability of legal rules to business needs is crucial. Nevertheless, and not surprisingly, many still view EU mandatory harmonization efforts as an opportunity to upgrade Member State corporate law.

This article shows that bringing options to the forefront of EU company law may significantly reduce costs for small and medium-sized firms and provide clear benefits to public companies. With respect to implementing such a regime, we advocate the step-by-step adoption of legal options, beginning with the implementation of a limited number of specific EU provisions that firms can select as an alternative to the corresponding Member State statutory or case law.

Suggested Citation

Hertig, Gerard and McCahery, Joseph A., Optional Rather than Mandatory EU Company Law: Framework and Specific Proposals. European Company and Financial Law Review, Vol. 3, No. 4, December 2006. Available at SSRN: https://ssrn.com/abstract=978487

Gerard Hertig (Contact Author)

ETH Zurich ( email )

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HOME PAGE: http://www.hertig.ethz.ch

European Corporate Governance Institute (ECGI)

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HOME PAGE: http://www.ecgi.org

Joseph A. McCahery

Tilburg University - School of Law; European Banking Center (EBC) ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands
+31-(0)13-466-2306 (Phone)
+31-(0)13-466-2323 (Fax)

Tilburg Law and Economics Center (TILEC)

Warandelaan 2
Tilburg, 5000 LE
Netherlands

European Corporate Governance Institute (ECGI)

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

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