The Dutch Ministry of Justice and Security has submitted the Implementation of Directive on Cross-Border Conversions, Mergers and Demergers (hereafter: “The Directive”) for consultation. Comments on the internet consultation can be made until March 7, 2022 on the website of Dutch Internet Consultations by the government[1]. The Directive must be transposed into Dutch law by January 31, 2023.
This bill seeks to implement the Cross-Border Conversions Directive, mergers and demergers (hereinafter: the Directive). The Directive aims to promote the freedom of establishment within the European Union (EU) by making it easier for companies to carry out cross-border conversions, mergers and divisions, while enhancing the rights of stakeholders (shareholders creditors and employees) are strengthened.
To this end, the Companies Directive (“Vennootschapsrichtlijn” in Dutch) is being amended and complemented, in particular through the introduction of new rules on cross-border conversions and divisions.
The uncertainty that accompanies the lack of a regulatory framework for cross-border conversions and divisions is undesirable for cross-border business within the EU. The preamble[2] to the proposed Directive notes that the lack of a framework now creates legal fragmentation and uncertainty and thus constitutes a barrier to exercise the freedom of establishment within the EU. Moreover, the lack of a regime for cross-border conversions and divisions leads to less optimal protection for shareholders, creditors and employees.
In addition to new regimes for cross-border conversions and divisions, the Directive also introduces changes to the cross-border mergers regime already provided for in the Companies Directive. The proposed amendments to the Directive show that certain amendments to the cross-border merger regime are necessary in order to enhance the effectiveness and efficiency of the regime.
The Directive is part of a package of measures by the European Commission "for fair, enabling and modern company law rules in the EU", to combat the current fairly outdated legislation.
[1] Overheid.nl | Consultatie Wet implementatie richtlijn grensoverschrijdende omzettingen, fusies en splitsingen. (2022). Internetconsultatie.nl. Geraadpleegd op 8 februari 2022, van https://www.internetconsultatie.nl/omzettingfusiesplitsing/b1
[2] Wet van [PM] tot wijziging van Boek 2 van het Burgerlijk Wetboek en de Wet op het financieel toezicht in verband met de implementatie van Richtlijn (EU) 2019/2121 van het Europees Parlement en de Raad van 27 november 2019 tot wijziging van Richtlijn (EU) 2017/1132 met betrekking tot grensoverschrijdende omzettingen, fusies en splitsingen (PbEU L 321/1) (Wet implementatie richtlijn grensoverschrijdende omzettingen, fusies en splitsingen)
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