(This note is not part of the Instrument and does not purport to be a legal interpretation).

The purpose of these regulations is to give effect to EU Directive 2001/86/EC of 8 October 2001 "Supplementing the Statute for a European Company with Regard to the Involvement of Employees".

The European Company Statute is a new legal instrument that gives companies with commercial interests in more than one Member State the option of forming a European Company (to be known as Societas Europea, "SE"), the objective of which is to make it easier for such companies to operate across the EU.

These regulations transpose the provisions of the Directive, providing that a new SE cannot be registered without first negotiating with employees on their involvement in the company, whether through information and consultation and/or, in certain circumstances, participation at board level.