On July 3, the University of Innsbruck hosted the first conference on the European Commission’s plans for EU Inc., a new European legal form.
Under the title “EU Inc.: Key Issues & Initial Analysis,” experts in Austrian corporate law discussed the Commission’s and Parliament’s drafts for a new legal form designed specifically to cater to startups and the needs of venture capital financing.
Through simplified and fully digital procedures, improved communication with authorities, easier share transfers, and a new financial framework, the goal is to facilitate the establishment and financing of innovative companies and to provide European startups with a new legal framework.
It is clear that the drafts still leave many questions unanswered, ranging from the legal basis to the details of share transfers and judicial enforcement.
✅ In any case, the project deserves support, as it represents an important impetus for modernizing Austrian corporate law as a whole!
✅ The EU-Inc. could also open up opportunities for Austria beyond the financing of startups: A more standardized legal form could shift competition among member states from the cheapest/most flexible legal form to the best enforcement at the most efficient procedural location.
✅ If we want to take advantage of the opportunities offered by an EU Inc., our legal system and legal practice must be prepared for it. This requires not only the courage to reform but also discussions among legislators, academics, and legal practitioners. This conference marked the starting point for that!
Representing FRRA were Paul Schörghofer as a speaker and Florian Hule as a panel moderator.