(1) Where the competent organs of the participating companies draw up a plan for the establishment of an SE they shall take the necessary steps to start negotiations with the representatives of the companies' employees on arrangements for the involvement of employees in the SE.

(2) Those steps to start negotiations shall begin as soon as possible -

(a) in the case of an SE to be created by merger in accordance with Article 2 (1) of the EC Regulation - after the publication of the draft terms of the merger;

(b) in the case of an SE to be created by the creation of a holding company in accordance with Article 2 (2) of the EC Regulation - after the publication of the draft terms for the creation of the holding company;

(c) in the case of an SE to be created by the formation of a subsidiary in accordance with Article 2 (3) of the EC Regulation - after the agreement of a plan to form a subsidiary; and

(d) in the case of an SE to be created by transformation in accordance with Article 2 (4) of the EC Regulation - after the agreement of a plan to transform.