Each member of an EEIG has one vote, although the contract for its formation may give certain members more than one vote provided that no one member holds a majority of the votes. The Regulation lists those decisions for which unanimity is required. The managers represent and bind the EEIG in its dealings with third parties even where their acts do not fall within the objects of the grouping. An EEIG may not invite investment by the public. An EEIG does not necessarily have to be formed with capital.
Members are free to use alternative means of financing.
The profits of an EEIG will be deemed to be the profits of its members and will be apportioned either according to the relevant clause in the contract or, failing such a clause, in equal shares. The profits or losses of an EEIG will be taxable only in the hands of its members. As a counterweight to the contractual freedom which is at the basis of the EEIG and the fact that members are not required to provide a minimum amount of capital, each member of the EEIG has unlimited joint and several liability for its debts. The communication sets out once again the definition of the EEIG and clarifies some of its characteristics and the way in which it operates so as to ensure that it can tender for public contracts and participate in programmes financed by public funds on an equal footing with other firms. It is important to note that the Community Directives on public procurement do not contain any provisions which could impede the participation of the EEIGs.