Slovakia: European Cooperative Society

On 1 April 2007, new laws came into effect regulating the establishment, management and control of the European Cooperative Society with its seat in Slovakia. All matters not regulated by the Act are governed by the Commercial Code.

The European Cooperative Society:

• will be incorporated as a legal entity entered in the Commercial Register
• can be established in Slovakia by a legal entity managed from outside the EU
• has restrictions on the transfer of its registered office to protect cooperative lenders against enforcement difficulties arising from relocation of the registered office
• can either have a one-tier (an administrative board with at least three members [and/including] a director general) or two-tier (a board with at least three members and a controlling commission) system of governance
• allows employees to influence decisions with rights to information, discussion and participation in management.

Employee participation entitles the employees’ committee:

• to receive a report at least once a year from management on the progress and foreseeable developments of the business
• to be given a draft agenda in advance of all board meetings
• to be informed about any extraordinary situations which could possibly influence employees’ interests, such as relocation or collective redundancies
• to negotiate regarding developments in the business, production and sales, merger, and organisational changes
• to influence boardroom appointments within the scope by the statutes
• to have the same protections during their terms of office as exist for employee representatives, such as protection against discrimination and paid time off.

Law: Act providing for European Cooperative Society (implementing EC Regulation 2003/72)