The Gazette 1974

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

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

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.