Statute will displace other national
companies formed
under the individual laws of the member States but
only that, in appropriate places, the Statute can be an
alternative to the domestic laws. The Statute would be
available at first only for large companies.
Convention on Jurisdiction and the enforcement of
Judgements in Civil and Commercial Matters
11.13. This Convention was drawn up by the original
member States in pursuance of the provision in Article
220 of the EEC Treaty requiring member States to
enter into negotiations with each other with a view to
securing for the benefit of their nationals the simpli-
fication of formalities governing the reciprocal recogni-
tion and enforcement of judgments of Courts or Tri-
bunals. It provides rules for the assumption of juris-
diction by the Courts of Member States in civil and
commercial matters generally (subject to certain speci-
fied exceptions, i.e., matters of status and arbitration)
and provides for the recognition and enforcement by
each member State of the judgments of the courts of
the other member States. The general object of the
Convention is the free circulation of civil and com-
mercial judgments throughout the Community. It
came into force between the Six on 1 February 1973.
Under the terms of the Accession Treaty the new
member States undertook to accede to the Convention
and to the Protocol on its interpretation by the Euro-
pean Court of Justice subject to any necessary adjust-
ments to be negotiated. A working group, representa-
tive of all member States of the enlarged Community,
is now engaged in the examination of the problems of
adaptation of the Convention to meet the requirements
of the new member States.
When the adjustments are finally agreed they will
be incorporated in a formal Protocol. Ratification of
the Convention, as adjusted, by each of the new mem-
ber States will then follow, as soon as each has
enacted the necessary implementing legislation.
Draft Convention on Bankruptcy, Winding
Up
Arrangements and analogous proceedings
11.14. This draft convention is the outcome of ap-
proximately seven years work by eminent jurists from
the original Member States meeting at intervals in a
working group. It deals with the Bankruptcy of indi-
viduals, the Winding Up of Companies and the admin-
istration of insolvent estates of deceased persons. Pro-
ceedings in respect of insurance undertakings, and cer-
tain other undertakings (such as building societies) to
be designated by the Contracting States, are to be ex-
cluded.
The underlying principle is that there shall be one
bankruptcy or winding up in the Community which
shall be recognised and effective (with some exceptions)
in all the member States.
The draft convention also provides for the adoption
by member States of a uniform law in respect of certain
matters; on other matters existing national law will
continue to apply. A second draft of the convention is
now being considered by the member States.
11.12. The work of the committee has now moved for-
ward to the preparation of draft articles on rules of
Private International law applicable to Property Rights
and other real rights in corporeal objects : preliminary
draft articles were prepared at the June meeting already
referred to but doubt was expressed by some delegations
as to the possibility of drawing up rules of conflict,
which would be universal in scope, relating to the
recognition of securities in movables without dis-
possession and providing for retention of ownership
upon the sale of movables. The Commission has now
circulated a draft directive with a view to arriving at a
solution to this problem within the nine member States
only.
A sub-committee was appointed at the June meeting.
This sub-committee met in Brussels in September and
formulated proposals in regard to draft rules of Private
International Law relating to movable property. These
proposals will be examined in Brussels towards the end
of November.
Draft Directive on Guarantees
11.13. A committee of experts drawn from the six
original member States of the Community was esta-
blished in 1971 to study the question of the harmonisa- ,
tion of national laws relating to guarantees. This com-
mittee prepared a preliminary draft directive which was
considered by an enlarged committee with representa-
tives from all nine member States at a meeting held in
Brussels from 1 to 3 October 1973. The purpose of
the draft directive is to achieve rules in regard to con-
tracts of guarantee which would apply throughout the
whole Community in order to facilitate the free move-
ment of capital which is envisaged in Article 67 of the
EEC Treaty. A further meeting of the committee of
experts will be held in the first half of 1974.
Harmonisation of Penal Law
Economic Penal Law
11.14. Experts from the Nine discussed this question
further at a meeting in Brussels on 17-19 September
1973. They agreed to add industrial products and
transport to the earlier list of priority areas (see para-
graph 11.16 of First Report).
Draft Convention on Private International Law
11.15. A committee of experts, consisting of dele-
gates from the various member States, has been con-
sidering the possibility of harmonising the rules of
Private International Law particularly in relation to :
(a) the law applicable to contractual and non-con-
tractual obligations
(b) the form of legal instruments and evidence
(c) the law applicable to corporeal and incorporeal
property and
(d) general questions on such matters as renvoi,
public policy and classification.
The group of experts drawn from the original mem-
ber States submitted a preliminary draft of a uniform
law on contractual and non-contractual obligations in
1972. This draft is now being considered by experts
from all the member States.
Harmonisation of Penal Law
11.16.
Economic Penal Law
: The question has arisen
whether the inequality of penalties imposed in different
member States for breaches of Community provisions
would tend to hinder the full implementation of these
provisions throughout the Community. The Council
decided in June 1971 to study actively the problems
posed in relation to the prevention and punishment of
breaches of Community Regulations, Directives and
Decisions. It was further decided that in this study
priority would be given to the fiscal, customs, agri-
culture and food products fields. Experts from the Nine
discussed this question in Brussels in November 1972.
This meeting considered a draft of common rules on
the prevention and prosecution of offences in the fields
in question.
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