<abstract xmlns="http://www.w3.org/1999/xhtml"><p>European Union acts empower cross-border economic association entities to determine the architecture of the emerging legal entities by themselves. As a manifestation of corporate democracy, the General Meeting, which is the highest authority of the company, can independently choose the form of management. It could be either a two-tier system (a supervisory body and a management body), or a one-tier system (an administrative body). To a certain extent, the choice is determined by the national laws on joint-stock companies and cooperatives. The subject of the analysis is the legal state of the two bodies in the two-tier system. The relationships between them are examined in the light of the European Union and the member states’ legislative regulations. The management body shall be responsible for managing the company. The catalogue/list of its powers includes all the segments of possible activities in its entirety. The compendium of management competences covers issues of strategic development, long-term and medium-term planning, technical and technological problems, the organizational and functional structure, the implementation of the financial plan, etc. A member or members of the management body shall be appointed and removed by the supervisory body. The supervisory body shall supervise the work of the management body. It may not itself exercise the power to manage. The members of the supervisory body shall be appointed by the General Meeting.</p></abstract>

European Union acts empower cross-border economic association entities to determine the architecture of the emerging legal entities by themselves. As a manifestation of corporate democracy, the General Meeting, which is the highest authority of the company, can independently choose the form of management. It could be either a two-tier system (a supervisory body and a management body), or a one-tier system (an administrative body). To a certain extent, the choice is determined by the national laws on joint-stock companies and cooperatives. The subject of the analysis is the legal state of the two bodies in the two-tier system. The relationships between them are examined in the light of the European Union and the member states’ legislative regulations. The management body shall be responsible for managing the company. The catalogue/list of its powers includes all the segments of possible activities in its entirety. The compendium of management competences covers issues of strategic development, long-term and medium-term planning, technical and technological problems, the organizational and functional structure, the implementation of the financial plan, etc. A member or members of the management body shall be appointed and removed by the supervisory body. The supervisory body shall supervise the work of the management body. It may not itself exercise the power to manage. The members of the supervisory body shall be appointed by the General Meeting.

The Two-Tier System of the European Economic Structures

“Neofit Rilski” South-West University

International conference KNOWLEDGE-BASED ORGANIZATION

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

{"article-title":"The Two-Tier System of the European Economic Structures"}

European Union acts empower cross-border economic association entities to determine the architecture of the emerging legal entities by themselves. As a...

The Two-Tier System of the European Economic Structures

Published Online: Jul 20, 2020

Page range: 242 - 247

DOI: https://doi.org/10.2478/kbo-2020-0084

Keywords
European company, European Cooperative Society, supervisory organ, management organ, managing director

© 2020 Asen Vodenicharov, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The Two-Tier System of the European Economic Structures

Published Online: Jul 20, 2020

Page range: 242 - 247

DOI: https://doi.org/10.2478/kbo-2020-0084

KeywordsEuropean company, European Cooperative Society, supervisory organ, management organ, managing director

© 2020 Asen Vodenicharov, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
European company, European Cooperative Society, supervisory organ, management organ, managing director