The EU has released a Notice to Stakeholders that warns EU company law will no longer apply in the UK after Brexit. The main points it raises are:
- UK incorporated companies will become third country companies and branches in EU-27 Member States of UK incorporated companies will become branches of third country companies
- Member States may not be obliged to recognise the legal personality (and the protections that flow from it) of companies which are incorporated in the UK but have their central administration or principal place of business in the EU
- EU law on disclosure, incorporation, capital maintenance and alteration, and cross-border mergers will no longer apply. However as these are currently enshrined in UK company law, there would be no change on exit unless and until those UK provisions are amended.
- The UK business register will not be connected to the business registers interconnection system and the way information is obtained will be different.
If you think these company law changes may have consequences for your business, get in touch and we can guide you through these issues.