EXTENDS
The European Cooperative Society (Involvement of Employees) Regulations 2006

The European Cooperative Society (Involvement of Employees) Regulations 2006 (Memo)

EXPLANATORY MEMORANDUM TO THE EUROPEAN COOPERATIVE SOCIETY (INVOLVEMENT OF EMPLOYEES) REGULATIONS 2006 NO.2059

EXPLANATORY MEMORANDUM TO

THE EUROPEAN COOPERATIVE SOCIETY (INVOLVEMENT OF EMPLOYEES) REGULATIONS 2006

2006 No. 2059

1. This explanatory memorandum has been prepared jointly by Her Majesty's Treasury and the Department of Trade and Industry and is laid before Parliament by Command of Her Majesty.

2. Description

2.1 The European Cooperative Society Regulations give effect in the UK to Council Regulation 1435/2003 (the "EC Regulation"). The EC Regulation creates a new form of cooperative, known as the European Cooperative Society (the "SCE"). SCEs can operate across the European Economic Area on the basis of registration in one Member State, thereby potentially broadening access to European markets for cooperatives which adopt this new form.

2.2 The European Cooperative Society (Involvement of Employees) Regulations implement Council Directive 2003/72/EC (the "EC Directive"). The Regulations guarantee clearly specified levels of participation and involvement for employees of this new form of cooperative.

3. Matters of special interest to the Joint Committee on Statutory Instruments

3.1 None.

4. Legislative Background

4.1 The European Cooperative Society Regulations give effect to the EC Regulation whilst the European Cooperative Society (Involvement of Employees) Regulations implement the EC Directive. Both sets of Regulations are made under section 2(2) of the European Communities Act 1972 and will come into force on 18 August 2006 (the date on which the EC Regulation and EC Directive come into force).

4.2 A transposition note relating to the EC Directive is attached.

5. Extent

5.1 Both sets of Regulations extend to the United Kingdom.

6. European Convention on Human Rights

6.1 The Economic Secretary to the Treasury has made the following statement under section 19(1)(a) of the Human Rights Act 1998:

"In my view the provisions of the European Cooperative Society Regulations 2006 are compatible with the convention rights."

6.2 Jim Fitzpatrick, Parliamentary Under-Secretary of State for Employment Relations and Postal Services, has made the following statement under section 19(1)(a) of the Human Rights Act 1998:

"In my view the provisions of the European Cooperative Society (Involvement of Employees) Regulations 2006 are compatible with the convention rights."

7. Policy background

7.1 Cooperatives in the UK are a corporate form normally registered under the Industrial Provident Societies Act 19651. They are run by their members and operate for their benefit. The Financial Services Authority acts as the registrar of industrial and provident societies in Great Britain and ...

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