European Economic Interest Grouping (EEIG)

Content

A European Economic Interest Grouping (EEIG) may be compared to a partnership operating across national borders. Some features of an EEIG: the persons proposing to form a grouping must enter into a contract and register the grouping, the grouping need not have capital, members have unlimited joint and several liability for the debts of the grouping.

Purpose

The purpose of a grouping is to facilitate and develop the economic activities of its members. Its activities must be related to the economic activities of its members and must be of a merely ancillary nature to these. Unlike a company, a grouping is not intended to make profits for itself.

Members

The members must be at least two physical or legal persons who have economic activities in different member states of the European Economic Area. (The European Economic Area currently consists of the EU member states plus Gibraltar, Iceland, Lichtenstein and Norway).

At least two of the members must have their head office, or in the case of physical persons their principal activity, located in different member states.

Legal capacity

A grouping has legal capacity. This means it can have rights and obligations. From the day it is registered, the grouping can acquire rights and take on obligations in its own name, it can enter into contracts or do other legal acts, it can appear in court and before other official agencies.

Each member state determines for itself whether the grouping has the status of a legal person; this is the case in Sweden.

Internal organisation

• The members constitute the governing body, which has the power to make any decision having the purpose of promoting the aims of the grouping. The members may issue directives to other bodies and officeholders of the group.
• The management may consist of one or more physical persons. The founding contract may provide for other bodies.

Authorised signatories

Only the manager, or the individual managers if there are more than one, can represent the grouping in its dealings with third parties. The founding contract may provide for collective procuration.

Capital

Since a grouping does not need to have capital, that form of security is not available to creditors. Instead, each member has unlimited joint and several liability for the debts of the grouping. However, payment must be sought from the grouping in the first instance. The liability of members is mandatory, i.e. it cannot be varied by the terms of the founding contract or by any other means.

Application for registration of a new EEIG

We recommend you to use our application form 908. All the members of the EEIG must sign the application form.

Dissolution

A grouping must always be dissolved by liquidation. The grouping retains its legal capacity until the liquidation proceedings are completed.

References

European Economic Interest Groupings Act, (Lagen (1994:1927) om europeiska ekonomiska intressegrupperingar).

Ordinance on Register of European Economic Interest Groupings (Förordningen (1994:1993) om register över europeiska ekonomiska intressegrupperingar).

Nr 16 e, 20 July, 2010