Business Organizations Reasons for comparative study Sensitize
to own business forms Identify universal truths Basis for reforms
(LLCs, auditors) Imperative of business globalization Civilian
business organizations Types Rules (mandatory / default)
Protections Slide 2 Business Organizations You are in-house counsel
for Nanosoft Corporation, a US technology business incorporated in
Delaware. Your company plans to manufacture miniature computers and
sell them in Europe and Latin America. You must structure the new
operations. What do you do? Slide 3 Business Organizations Is there
a company law of Europe? Latin America? Are there civilian patterns
for business organizations? Slide 4 Business Organizations European
Community Art. 54(3)(g) of Treaty of Rome Harmonization Protection
of members / third parties Company law directives History Topics
Future Company law regulations Slide 5 Business Organizations First
Council Directive 68/151/EEC Second Council Directive 77/91/EEC
Third Council Directive 78/855/EEC Fourth Council Directive
78/660/EEC Sixth Council Directive 82/891/EEC Seventh Council
Directive 83/349/EEC Eighth Council Directive 84/253/EEC Eleventh
Council Directive 89/666/EEC Twelfth Council Directive 89/667/EEC
Directive 2001/86/EC Directive 2003/58/EC Council regulation (EEC)
2137/85 Regulation (EC) 2001/2157 What do you notice about the
directives? What are regulations? What topics? Slide 6 Business
Organizations 1 st Directive (1968) protect interests of members /
others 2 nd Directive (1977) formation / capital maintenance of
public companies 3 rd Directive (1978) notice / consultation for
mergers of public companies 4 th Directive (1978) publication of
annual accounts of companies 6 th Directive (1982) division of
public companies 7 th Directive (1983) consolidated accounts for
company groups 8 th Directive (1984) approval of statutory auditors
of public companies 11 th Directive (1989) disclosure by branches
of EC companies 12 th Directive (1989) single member private
companies Directive (2001) supplement to statute on SE Directive
(2003) disclosure by companies Regulation (1985) European Economic
Interest Grouping (EEIG) Regulation (2001) statute for European
company (SE) Slide 7 Business Organizations Controversial topics
Corporate governance: board structure (unitary / two-tier) Proposed
Fifth Directive Local option in SE (2001) Takeovers: substantive
(detailed) regulation or disclosure High level group report (2002)
Level playing field, equitable mandatory price, rights after
successful bid Internal affairs doctrine (company law determined by
place of incorporation Centros (ECJ 1997), berseering (ECJ 2000)
Proposed 14 th directive on transferring registered office Slide 8
Business Organizations Civil law heritage Company as private
association of two or more persons Law merchant (partnership)
Separate personality Distinction - formation / monopoly One person
company? State recognition, not creation What kinds of companies?
Slide 9 Business Organizations Slide 10 A.sociedad annima
B.sociedad cerrada C.sociedad colectiva D.sociedad en comandita
(sociedad comanditaria) E.sociedad de empresas (en participacin)
F.sociedad de inversiones G.sociedad de responsabilidad limitada
H.sociedad filial I.sociedad matriz J.sociedad por acciones
K.sociedad pblica (corporacin) L.sociedad unipersonal US
equivalent? Slide 11 Business Organizations A.sociedad annima
B.sociedad cerrada C.sociedad colectiva D.sociedad en comandita
(sociedad comanditaria) E.sociedad de empresas (en participacin)
F.sociedad de inversiones G.sociedad de responsabilidad limitada
H.sociedad filial I.sociedad matriz J.sociedad por acciones
K.sociedad pblica (corporacin) L.sociedad unipersonal US
equivalent? __ corporation __ closed corporation __ general
partnership __ government agency __ limited partnership __ joint
venture __ individual corporation __ investment company __ limited
liability company __ parent company __ subsidiary company Slide 12
Business Organizations A.sociedad annima B.sociedad cerrada
C.sociedad colectiva D.sociedad en comandita (sociedad
comanditaria) E.sociedad de empresas (en participacin) F.sociedad
de inversiones G.sociedad de responsabilidad limitada H.sociedad
filial I.sociedad matriz J.sociedad por acciones K.sociedad pblica
(corporacin) L.sociedad unipersonal US equivalent? AJ corporation B
closed corporation C general partnership K government agency D
limited partnership E joint venture L individual corporation F
investment company G limited liability company I parent company H
subsidiary company Slide 13 Business Organizations Slide 14 Where
does one find the rules that govern companies? civil code
commercial code company statutes Slide 15 Business Organizations
Where does one find the rules that govern companies? civil code
(partnerships, personal) commercial code (limited liability)
company statutes (specialized) Slide 16 Business Organizations What
is hub and spoke structure of civilian business organizations?
Slide 17 Business Organizations Non-business associations
Political, charitable, cultural History Not recognized in early
codes German Civil Code (association right) Creature of state (but
later recognized as fundamental human right) Modern codes
Switzerland: informality of non-profit Registration not necessary
Slide 18 Business Organizations Protective philosophy Capital
structure (formation) Minimum paid-in capital Proper consideration
Condition to registration Distributions Capital maintenance rules
Reserve accounts Statutory auditor Protection of minority
shareholders, creditors Regulation of qualifications, independence
Slide 19 Business Organizations How is this handled in the United
States? Capital formation Limits on distributions Supervision of
governance, financials Slide 20 Business Organizations
paterfamilias (pay-tuhr-fuh-MIL-ee-uhs) noun The male head of a
family or a household; father figure. [From Latin paterfamilias
(father of the household), from pater (father) + familias, from
familia (household), from famulus (servant, slave).] The feminine
equivalent of the word is materfamilias. Slide 21 Business
Organizations What explains the difference in protective mechanisms
in Europe and the US? Slide 22 Business Organizations
