The EU has come a step closer to adopting new rules which should facilitate the cross-border mobility of EU companies. EU ambassadors meeting today in Coreper agreed on the Council's position on the draft directive on companies' cross-border conversions, mergers and divisions.

The directive will enable companies to reap the full benefits of the EU's single market. It introduces comprehensive procedures for cross-border conversions, divisions and provides for additional rules on cross-border mergers of limited liability companies established in an EU member state.

The directive sets out procedures which will protect the legality of cross-border operations under all the national legal orders concerned and at the same time ensure that employees and shareholders are adequately informed about the expected impact of the operation. Moreover, it provides for a set of safeguards in order to protect shareholders and employees as well as the creditors of the company concerned.

Last but not least, the directive encourages the use of digital tools throughout the cross border operation and the exchange of relevant information through the existing, digitally interconnected, business registers.

Next steps

The Romanian presidency of the Council will now start negotiations with the European Parliament with the aim of adopting the draft directive at first reading.