By JJ THOMSON

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2 Merger with a 90 per cent subsidiary 40. In the event of a cross-border merger by acquisition by a company that holds 90 per cent or more (but not all) of the shares and other voting securities in the acquiring company or companies, the report(s) of the independent expert(s) and the documents necessary for scrutiny of the merger shall be required only to the extent the national law of one Member State governing the merging companies so requires (Art. ). The term ‘scrutiny’ is not defined but is taken to refer to the scrutiny which national law may require for a merger with a 90 per cent subsidiary.

16(3)(a) Dir. and Art. ). B Creation of an SNB 10. As soon as the above-mentioned information procedure is complete, an SNB must be established. (i) Composition 11. In transposing the Directive, the Member States must ensure that members of the SNB are elected or appointed in proportion to the number of employees employed in each Member State by the merging companies, their concerned subsidiaries or establishments, by allocating in respect of a Member State one seat per portion of employees employed in that Member State which equals 10 per cent, or a fraction thereof, of the number of employees employed by the merging companies, their concerned subsidiaries or establishments in all the Member States taken together (Art.

See no 42 of this chapter). Each merging company must submit its pre-merger certificate to the court, notary or competent authority of the Member State in which the surviving company is situated within six months of its issuance together with a copy of the draft terms of cross-border merger as approved by the general meetings of the merging companies (Art. ). The surviving company need not issue a pre-merger certificate, as its decision is part of the completion process monitored by the court, notary or authority designated to supervise completion of the merger, unless the general meeting of the surviving company is held before the completion of the cross-border merger is enacted.

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On the Origin of Spectra and Plancks Law by JJ THOMSON


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