Legal Updates

Commercial Law – New Definition for EEA State – New Regulations

On 14 March 2007, the OPSI published the Companies (EEA State) Regulations 2007 and came into force on the 9th of March 2007. These regulations provide a new definition of "EEA State" for certain primary and secondary legislation affecting companies. The legislation amends:

§   The Companies Act 2006;

§   The Companies Act 1985,

§   The Companies (Summary Financial Statement) Regulations 1995; and

§   The Takeovers Directive (Interim Implementation) Regulations 2006.

The new definition is intended to ensure that Bulgaria and Romania are included in the ambit of the legislation. The new definition in the regulations refers to the definition inserted into the Interpretation Act 1978 by the Legislative and Regulatory Reform Act 2006. This means that the definition now includes all Community member States.

This is important because the definition is relevant to various European obligations that must now be adhered to by Bulgaria and Romania, such as:

§   The right of Bulgarian and Romanian shareholders in UK companies to receive communications from the company;

§   The relaxation of certain accounting requirements in respect of UK subsidiaries of Bulgarian and Romanian companies; and

§   Information exchange between UK takeover and financial services regulators and Bulgarian and Romanian authorities in implementing the Takeovers Directive.

The list of member states is now as follows:

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© RT COOPERS, 2007. This Briefing Note does not provide a comprehensive or complete statement of the law relating to the issues discussed nor does it constitute legal advice. It is intended only to highlight general issues. Specialist legal advice should always be sought in relation to particular circumstances.