RECENT DEVELOPMENTS IN EUROPEAN COMPANY LAW: A WAY FORWARD TO MORE SOCIAL EUROPE?

Abstract

Developments in EU Company Law show how EU Company Law has become more than just a set of market-driven rules focusing on overcoming legal barriers in cross-border investment. Non-binding guidelines on methodology for reporting non-financial information, combating discrimination on the grounds of gender by implementing the principle of equal treatment of men and women in matters of employment, proposal for a new legislation aiming at attaining a 40% objective of the under-represented sex in non-executive board-member positions in publicly listed companies are some of those initiatives. Several EU reports have stressed the positive impact of employee participation on companies’ economic results, motivation and retention of employees. It is encouraging for stakeholders and the future of ‘Social Europe’ to see that the present European Company Mobility Package – tackling cross border conversions, mergers and divisions takes an approach in favor of shareholders, employees and creditors. According to the European Economic and Social Committee, the new company law rules should make it easier for companies to merge, divide or move within the Single Market. New rules should ensure better protection of employees’ rights and prevention of tax abuse. One may pose a question should the EU implement its social policies through EU Company Law. If so, which areas of EU Company Law should preserve (and enhance) social values? Could too much care for sustainability of social values eventually lead to non sustainability of traditional company law? * Professor at Law Department, Faculty of Economics and Business, University of Zagreb; hhorak@efzg.hr ** Teaching and Research Assistant, Law Department, Faculty of Economics and Business, University of Zagreb; kpoljanec@efzg.hr Intereulaweast, Vol. V (2) 2018 152