Scholarly record

EUROPEAN COMPANY FOR LARGE BUSINESS: ADVANTAGES, DRAWBACKS AND PROSPECTS

V. Reingold, V. Dolotov

Abstract

The aim of this research paper is the study of legal status of the European company, reflection of preconditions for creating a new legal form of a company, which has a European origin, the identification of features of the legal regulation of its establishment and operating activities, as well as the analysis of the advantages and drawbacks of these legal entities, which define its effectiveness for large business and prospects. The methodological basis of the research is historical, comparative-legal, particular-legal analysis, as well as secondary data analysis. One of the most important findings is that supranational legal entities are one of the most promising organizational legal forms of business in the territory of the EU Member States. Among them the European company has received the most attention from business and suitable development. The Regulation on the Statute of the European company vest this European legal form with the prominent features of supranational legal entity. At the same time, this Regulation allows the foundation of legal entity which has a supranational character. The European company initially was created to develop competitive benefits for large businesses. It has several advantages that may ensure the growth of activities and the development of this legal form in the EU. But when comparing the benefits of European company with its drawbacks, it should be recognized that at the moment the drawbacks are more meaningful for business community. The influence of external factors as well as decline of profitability of companies over the world in the last years also play an important role in the perspectives of the development of European companies. The research paper presents the conclusions and suggestions which can be suggested as key factors and potential solutions for business.

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