NoC223/52 OfficialJournaloftheEuropeanCommunities31.8.92
Opinionon:
—theproposalforaCouncilRegulation (EEC)ontheStatuteforaEuropeanAssociation,
and
—theproposalforaCouncilDirectivesupplementingtheStatuteforaEuropeanAssociation
withregardtotheInvolvementofEmployees(*)
(92/C223/16)
TheCouncildecidedon26March1992,inaccordancewithArticles54and100AoftheEEC
Treaty,toasktheEconomicandSocialCommitteeforanOpinionontheabovementioned
proposals .
TheSectionforIndustry,Commerce,CraftsandServices,whichwasresponsibleforthe
preparatorywork,adopteditsOpinionon6May1992.TheRapporteurwasMrRamaekers
andtheCo-Rapporteur MrPaneroFlorez.
Atits297thPlenarySession(meetingof26May1992)theEconomicandSocialCommittee
adoptedthefollowingOpinionbyamajority,with11votesagainstand16abstentions .
solelytoencouragetheharmoniousdevelopmentand
operationofassociationsinEurope.
1.4.TheCommitteethushopestocontribute
towardsthedraftingofainstrumentwhichisvitalto
theaffirmationoftherightofassociationasabasic
freedomandmanifestationofEuropeancitizenship .
1.5.TheCommitteeconsidersitabsolutelyessential
thatthethreeregulationsonthestatutesforaEuropean
association,aEuropeanmutualsocietyandaEuropean
cooperativebeexaminedandadoptedsimultaneously .
1.6.TheCommitteeurgesmaintenanceofthe'gang­
ways'principle,whichitalsoconsidersessential,i.e.
thepossibilityofsettinguponeofthesethreeEuropean
entitiesthroughanationalassociation,mutualsociety
orcooperative .
1.7.Totakeaccountoftheevolutionarynatureof
themattersdealtwithbytheregulation,theCommittee
wouldlikeittoincludeaflexiblerevisionclause
enabling,forinstance,theexhaustiveannexestobe
modified.
1.8.Moreover,becauseofthefrequentreferralsthe
draftregulationmakestoMemberStates'legislation,
theCommitteeurgestheCommissiontocontinueits
comparativestudiesintothedifferentnationallaws.I.TheCommitteeapprovestheproposalforaregu­
lationsubjecttothefollowingcomments :
1.Introduction
1.1.TheCommissionhaspreviouslyacknowledged
twofundamentalrolesplayedbyassociationsatCom­
munitylevel,namelytheircapacitytodevelopeconomic
activityandtheirtaskofpromotingthegeneralinterest
andactivityinindividualsectorsintheCitizens'
Europe.
1.2.TheESCunderlinedthisrecognitioninitsOpin­
ionof19September1990ontheCommissionCom­
municationtotheCouncilconcerningsocialeconomy
enterprisesandtheachievementofafrontier-freeEuro­
peanmarket.
1.2.1.ThisOpinion,themainlinesofwhichareset
outbelow,isavaluableguidebecauseoftheverybroad
consensusreachedonit:therewerenovotesagainst
andonlythreeabstentions .
1.2.2.AmongthewishesexpressedbytheCom­
mittee,oneisspecifictoassociationsandshouldbe
particularlyemphasised :thatistheideaofasingle
CommunitylegalStatuteforallEuropeanassociations ,
soasnottointroduceanydivergenciesintotheassoci­
ationssector.
1.2.3.TheCommitteeispleasedthattheCom­
missionproposalforaregulationhastakensomuch
accountoftheremarksmadeintheOpinionofSep­
tember1990.
1.3.Theproposalsforchangeswhichfollowarea
logicalcontinuationoftheOpinionandareintended2.Mainrecommendations oftheESCOpinionon
19September1990
2.1.Specificsituationofassociations :creationofa
singleCommunitylegalStatuteforallEuropeanassoci­
ations. (i)OJNoC99,21.4.1992,pp.1-14.

31.8.92 OfficialJournaloftheEuropeanCommunities NoC223/53
—secondly,thislinkagewiththeStateinwhichthe
EAhasitsregisteredofficedoesnotseemanappro­
priatecriterionsinceitwouldleadtoinequalities
betweenEAswiththeirregisteredofficesindifferent
ECMemberStates.
3.3.2.Theoretically theidealsolutionfromanEC
anglewouldbetoallowEAsaccesstoallformsof
financingavailabletothenationallegalentitieslisted
intheAnnex.ButtheCommitteeiswellawarethatthis
approachcouldgiverisetomanypracticaldifficultiesin
applyingaparticularsystem,besidesdistortingcompe­
titionbetweenEAsandnationalassociations .2.2.Establishmentofanoptional,alternativespecific
legalinstrument [giventheloopholesandlimitsofthe
EuropeanEconomicInterestGrouping(EEIG)andthe
EuropeanCompany].Thisinstrumentwillalsotake
accountofthespecificnatureofenterprisesinthesocial
economysector.
2.3.Clarificationoffinancingtechniquesforconsoli­
datingorboostingownfunds.
2.4.Compliancewiththe'onemember,onevote'
principle,adaptableforlegalpersons.
2.5.Provision,intheeventofliquidation,forthe
distributionofassetstobodiespursuingsimilarobjec­
tives.
2.6.Accessibilityofthestatutetobothnaturaland
legalpersons.
2.7.ThepossibilityofestablishingaEuropeancom­
panyofthistypebymerger,setting-upasubsidiary,
conversionofanationalcompanyorfromscratch.3.3.3.However,thewholeaimofaEuropeanstatute
istotranscendthenationaldimensionandestablisha
genuinelyEuropeanassociationonwhichtheState
chosenforestablishmentoftheEA'sregisteredoffice
shouldhaveaslittleinfluenceasthelocationofa
nationaloffice'sregisteredofficeinonetownrather
thananotherwithinthecountryconcerned .
3.3.4.Nevertheless ,theCommitteefeelsthatasys­
temofreferralcouldbefoundwhichavoidsanydistor­
tionofcompetitionbetweendifferentEAs,orbetween
nationalandEuropeanassociations :thelawsofthe
countryinwhichaparticularactivityiscarriedout
couldserveasreference .
3.3.5.ObviouslytheCommitteeisawarethatthis
methodhasitsdrawbacks,suchasthedifficultyof
locatingtheactivityanddifferencesintheformsof
financingavailabletotheEAaccordingtothecountries
towhichitextendsitsactivities.3.ResponsescontainedintheproposedCouncilRegu­
lation
3.1.TheCommitteenotesthatthedesireofassoci­
ationsforrecognitionandthepossibilityofoperating
throughouttheEC,onthebasisofasinglestatute,has
beenheededinArticle1(textoftheactualstatuteand
ExplanatoryMemorandum ),butmoreparticularlyin
thefifthandseventhrecitalsprecedingtheactualpro­
visionsoftheproposedregulation.
3.2.TheCommitteeispleasedthatcertainrecitals
(eleventhandtwelfth)recognizethatneithertheEuro­
peanCompanynortheEEIGaresuitablecross-border
cooperationinstrumentsforassociationsorfoun­
dations.
3.2.1.ConsequentlytheCommission—whichisto
becongratulated—hasdraftedthisproposalforaregu­
lation,whichisavitalbasiccomponentinconfirming
therightofassociationasafundamentalfreedomand
expressionofEuropeancitizenship .
3.3.Article41providesthattheEAmaymakeuse
ofallformsoffinancingintheStateinwhichithasits
registeredofficeunderthesameconditionsasthose
applyingtothelegalentitieswhichfoundedit.
3.3.1.Thiswordingcallsfortwocomments :
—firstly,theCommitteethinksArticle41shouldmen­
tionnaturalpersonsaswellastheEA'sfounding
entities,sincebothmaysetupanEA,and3.3.6.Havingbrieflymentionedthesedifferentsys­
tems,eachwithitsstrongandweakpoints,theCom­
mitteecanonlyrecommendthemost'European'sol­
utiontoprovideassociationswiththemostoperational
cross-borderlegalinstrumentpossible.
3.3.7.TheCommitteealsowondersiftheformsof
financingreferredtoinArticle41includebothsubsidies
andthepossibilityofanEAappealingtopublic
generosity .
3.3.8.Ifitdoesnot,theCommitteewouldlikethe
Commission toseethatsuchsourcesoffinanceare
includedinthisprovision.
3.3.9.Finally,theCommitteewouldlikethepro­
posedregulationtoindicatethatanEAcancallupon
thevariousEuropeaninstrumentsandformsoffinan­
cing,andunderthebesttermspossible.
3.4.Article17currentlyprovidesforthe'onemem­
ber,onevote'system.TheCommitteethinksitwould
bepreferabletoprovideforthepossibilityofweighting

NoC223/54 OfficialJournaloftheEuropeanCommunities 31.8.92
association .TheCommitteeregretsthat,inthelatter
case,theregulationseemstorequiresomekindof
'priorauthorization'.Anationalassociationwishingto
becomeanEAwillhaveto'showthatitiscarryingon
agenuinecross-borderactivity'.
3.7.1.TheCommitteewonderswhythisrequirement
islaiddownfortheconversionofanationalassociation
whennocomparablerequirementisstipulatedforthe
otherwaysofforminganEA.
3.7.2.TheCommitteeconsidersthattheimposition
ofsuchaprocedureistantamountto'puttingthecart
beforethehorse',forsurelytheveryreasonthat
nationalassociationswillwanttochosetheEuropean
statuteisbecausetheyintendtocarryoutfuturecross­
borderactivities.
4.ProposedChangestoCertainProvisionsinthePro­
posalforaRegulation
Article1(1)
4.1.TheCommitteewouldliketodrawtheCom­
mission'sattentiontothewords'generalinterest',
whichinrealitymaymeandifferentthingsindifferent
MemberStates,andtotheneedtoexercisecarewhen
translatingthedifferentlanguageversions.thisvotingright(uptoastatedmaximumlimit)totake
accountofthefactthat(a)theEAmayconsistof
naturalorlegalpersonsand(b)thelattermaydifferin
nature.
3.4.1.TheCommitteethereforeproposesthat
Article17beamplifiedtoread:
'EachmemberoftheEAshallhaveonevotesubject
tomultiplevotingrightslimitedbytherules.'
3.5.Article44(3)specifiesthatnetassetsshallbe
distributedasstipulatedintherulesand,failingsuch
provision,inaccordancewiththelawsapplyingtothe
EAintheMemberStateinwhichithasitsregistered
office.
3.5.1.TheCommitteeconsidersthatthiswould
completelycontradictoneofthefundamentalprinciples
ofsocialeconomy,namelythewayinwhichremaining
assetsshouldbedistributed;itwouldliketheproposed
regulationtotakeaccountofthisprinciple,evenif
certainnationallegalsystemslaydownsolutionswhich
aredifferentfromoropposedtoit.
3.5.2.TheCommitteethereforeproposesthefollow­
ingwordingforArticle44(3):
'thenetassets,afterthecreditorshavebeenpaidin
full,shallbedistributedeithertootherEAsorto
oneormorebodieshavingthesameorsimilar
purposes.'
3.6.TheCommitteeconsidersitapositivestepthat
thestatutehasbeenmadeaccessibletonaturalpersons
(especiallyasthisisnotyetthecaseforSCEsandMEs)
inlinewiththewishesexpressedintheESCOpinion
ofSeptember1990.
3.6.1.However,theCommitteefeelsthatthemini­
mumrequirementof21naturalpersonsistoohigh,
particularlyasthisthresholdwassettotakeaccount
ofonlyonecountry'slaws;itthereforeproposesthat
anEAmaybeformedfromaminimumof7natural
persons.
3.6.2.AsregardstheformationofanEAbytwo
legalpersons,theCommitteethinksthattheoretically
thebestsolutionwouldbefortheEAtobeformedby
anylegalentity,therebytakingaccountofthefactthat
thenatureoftheEuropeanassociationisnotnecessarily
thatofitsmembers.
3.6.3.Ifthatisnotfeasible,theCommitteetrusts
that,attheveryleast,cooperativeandmutualsocieties
must,alongwithanyformofassociation,haveaccess
totheEAassoonasitiscreatedinordertofoster
closertiesandcooperationbetweenthesethreetypes
ofenterprise.
3.7.Article3allowsdirectformationofanEAby
naturalorlegalpersonsortheconversionofanationalArticle2
4.2.AstheCommitteehasalreadypointedoutpre­
viouslyinconnectionwithArticle3,itwouldbedanger­
oustoestablishasystemofpriorconstraint :inthecase
ofArticle2(2)therightsconferredbylegalpersonality
willnotbegrantedunlesstheyarenecessaryforthe
pursuitoftheEA'sobjects.
4.2.1.Thisconditiontoomustbestruckoutsoas
toensureequalitybetweenEuropeanassociations,irres­
pectiveofthecountrytheychooseastheirheadquarters .
4.2.2.Thisisbecause,inviewofthenumberof
referralsbytheregulationtothelawsoftheMember
States,itisimportantthatArticle2actuallyenables
allEAstocarryouttheirbusinessthroughoutthe
Community .
4.2.3.Theconditionshouldthereforeberemoved
fromArticle2(2)asitcontradictsArticle6(3).
Article3
4.3.TheCommitteewouldlikethesecondindentof
Article3(1)toread'...beingnationalsoforresidentin

31.8.92 OfficialJournaloftheEuropeanCommunities NoC223/55
II.TheCommitteeapprovestheproposalforadirec­
tive,subjecttothefollowingcomments :atleasttwoMemberStates'sothatpeoplelivingin
differentMemberStatesbuthavingthesamenationality
maybeallowedtoformanEA.
1.TheESCwelcomestheCommission'sdesireto
takeappropriateaccountoftheroleofemployeeswhen
supplementing theStatuteforaEuropeanassociation .
Theproposeddirectivecoordinatesnationalprovisions
concerningtheparticipationofemployees,thepro­
visiontothemofinformationandtheirconsultation
andconstitutesanindispensablecomplementtothe
StatuteforaEuropeanassociation .
1.1.Thisdirectiveisanimportantcomponentofa
policytopromoteeconomicandsocialcohesioninthe
Community .Article6
4.4.TheCommitteewishestoensureequality
betweenEuropeanandnationalassociationsandthere­
forewishestoreducetheriskofanEAwhichdevelops
itsactivitiesindifferentcountriesenjoyingbetterlegal
rightsandcapabilitiesthanthoseavailabletonational
associations inthecountriesconcerned .
4.4.1.Toreducethisriskitmightbeagoodideato
includeintheregulationArticle2(2)oftheCouncilof
EuropeConventionontherecognitionofthelegal
personalityofinternationalnon-governmental organis­
ations,viz.:
'However,whentheyarerequiredbyessentialpub­
licinterest,restrictions,limitationsorspecialpro­
ceduresgoverningtheexerciseoftherightsarising
outofthelegalcapacityandlaiddownbythe
legislationoftheStateinwhichtheEAcarriesout
itsactivities,contractsorentersinrelationswith
thirdpartiesshallbeapplicable.'
4.4.2.ThiscouldbeaddedtoArticle6(3)ofthe
proposal,stipulatingthatitstermsapplyasanexcep­
tiontothoseinArticle2(2).1.2.Throughthisdirectiveemployeesshouldbepro­
videdwithaninformationandconsultationprocessand
beinvolvedinthecorporateplanningoftheEuropean
association .
1.3.TheESCconsidersitabsolutelyvitalthatthe
proposedregulationanddirectivebothcomeintoforce
atthesametime.
2.EveninitsOpinionontheStatuteforaEuropean
CompanytheESCrepeatedlyaffirmeditsagreementin
principleandstressedthattheinvolvementof
employeesisanimportantpreconditionforthedevelop­
mentofademocraticsocietyandaCitizens'Europe.Article15
4.5.TheCommitteewondersifitisnecessaryfora
member'srepresentativeatthegeneralmeetingtobea
memberoftheEA.
2.1.InthisconnectiontheESCaffirmsonceagain
thatemployeesmustbeassuredofjointrepresentation
oftheirinterestswithintheenterpriseandbeinvolved
incertainbusinessdecisions,thoughwithoutinfluen­
cingtheresponsibilityorefficiencyofmanagement .
TheESChasalreadystatedthisviewinitsOpinions
of25October1972,29May1974and28March1989
ontheEuropeanCompany.Article23
4.6.TheCommitteethinksthattheminimumfre­
quencyofexecutivecommitteemeetingslaiddownin
Article23(1)istoostrict;itcouldbeextendedtoonce
everysixmonths.
2.2.However,inviewofthepolitical,social,histori­
calandphilosophicalconceptsofthedifferentMember
States,employeeinvolvementhasneithertakenthe
sameformsnorreachedthesamestageinallMember
States.Article31(2)
4.7.TheCommitteeaskstheCommissiontoredraft
thisArticlesothatUKcharitiesmayalsomakeuseof
theStatute.
InanyeventthesecondparagraphofArticle31should
read:
'Allmembersoftheexecutivecommitteeshallcarry
outtheirfunctionsintheinterestsoftheEA,having
regardtotheinterestsofthemembersandthe
employeesandinparticularitsbeneficiaries.'3.TheCommitteealsobelievesthat,asinmany
otherfields,itwillinitiallybeimpossibletoachieve
uniformityasregardsEuropeanassociations .
3.1.TothisextenttheCommission'ssuggestionof
makingaflexibleofferwhichtakesaccountofactual

NoC223/56 OfficialJournaloftheEuropeanCommunities 31.8.92
legalcircumstances intheMemberStatescanbe
accepted.3.2.Effortsshouldthereforebemadetoseethatthe
co-determination optionsproposedbytheCommission
areequivalentasregardscontent.
DoneatBrussels,26May1992.
TheChairman
oftheEconomicandSocialCommittee
MichaelGEUENICH
APPENDIX
totheOpinionoftheEconomicandSocialCommittee
Thefollowingamendments ,whichreceivedatleastonequarterofthevotescast,wererejectedduringthe
proceedings :
Point1.2.4(new)
'TheCommitteethinks,however,thattheStatutefollowstheproposalsfortheEuropeanCompanytoo
closely.UnlikethelegalformfortheEuropeanCompany,theAssociationpursuesonlyidealandsocially
beneficialgoals;theAssociationStatutethereforecouldbesimplifiedconsiderablyintheinterestsofgreater
flexibility.Thisappliesparticularlytoallthecostlyprovisionsconcerninginternalbodies,whichcouldin
partbegovernedbytheRulesofProceduresetoutinArticle28.'
Reason
TheEuropeanAssociationStatuteproposedbytheCommissionisverysimilartothatofalargeindustrial
company.Theproposedprovisionsaretoodetailedandbureaucraticfortheeverydayneedsofanassociation .
Theyalsocompletelyignoretheprincipleofstatutoryautonomyenshrinedinthelawsgoverningassociations .
MostofthelawsgoverningassociationsinforceintheMemberStatesgetbywithfarfewerprovisions.This
legalform,ascurrentlyproposed,wouldscarcelybeused.
Voting
For:28,against:58,abstentions :9.
PartII,point1
Addthefollowingtothefirstsentence:
'...althoughitwouldstressthatinthecontextoftheemphasisonsubsidiaritythiswouldprimarilybea
matterforagreementbetweentheemployersandemployeesoftheindividualorganisations.'
Voting
For:27,against:53,abstentions :11.