10.12.2019 10:18:25

Modifying cross-border transformations in the EU

A new Directive on cross-border mergers, demergers and divisions related to limited liability companies has been adopted by the Council of the EU. The legislation broadens the scope of the existing regulation and addresses certain social and tax concerns by (i) increasing the protection of the stakeholders and employees, (ii) introducing a stricter pre-operation assessment and anti-abuse control (the procedure will likely become longer and more uncertain), (iii) reflecting current ambiguities and practice, and (iv) introducing the possibility to use digital tools and processes.

The Directive will have to be transposed within three years.