N-EXTLAW, along with members of other policy and research groups have been working to provide recommendations on the 28th regime.
We have argued that legal provisions in the 28th regime should present new European corporate law that encourages long-term ownership, to enable long-term competitiveness and autonomy of European companies. This should include provisions facilitating steward-ownership and employee-ownership, by enabling (the enforcement and long-term existence of) a separation between voting and economic rights, and the ability to establish an Employee Stock Ownership Plan (ESOP) through a special purpose vehicle.
The EU currently lacks the capacity to fully nurture its own ecosystem of innovative companies, we argue largely due to insufficient support for ownership retention and to the absence of credible, future-proof succession options in its legislative framework. As part of the 28th regime, the design of a European company should prioritise ownership structures that genuinely enable the growth of innovative and competitive industries across Europe.
The legislative proposal from the European Commission is expected soon, and it is crucial that these key elements of the resolution adopted by European Parliament in January are included and available under the legislation.
📌 Coming soon, N-EXTLAW team member Suzanne Broer has been writing on the potential of the 28th regime, which will be published as a working paper.
