Companies and co-operatives

Although the Council had already adopted provisions to simplify the establishment of a European company (Regulation No. 2157/2001) and European economic interest groupings (Regulation No. 2137/85), neither of these provisions could fully address the specific needs of co-operatives. The EU was aware of the role played by co-operatives in regional development and the establishment of a common market, as well as of the legal obstacles remaining in this area. That is why the Council has now adopted this regulation, intended to simplify cross-border co-operation between co-operatives. The purpose of the regulation is to allow natural persons, as well as legal entities from various EU Member States, to establish a co-operatives in the form of a European co-operative society (ECS), the scope and legal form of which is identical, and therefore recognised, in all EU Member States.

An SCE is a legal entity; its fundamental purpose is to satisfy its members’ needs and/or the development of their economic and social activities, particularly by executing agreements with them for the supply of goods or services, or the performance of work that forms the particular SCE’s scope of business. The regulation governs a whole series of matters in connection with the establishment and operation of an SCE (including the number and legal form of co-operative members, registered capital, provisions of statutes and business name). The SCE statute is complemented by the Council Directive 2003/72/ES dated 22 July 2003 that governs the means of involvement of the SCE employees in its management.

The Regulation comes into force on 18 August 2006; Member States must also implement the complementary Directive by the same date.