When GM Corp. recently announced it intended to cut $635 million in costs from its European operations by slashing jobs and closing plants, the workers' council at the company's Opel operations in Germany had a better idea.
The council argued the company could achieve its goals by merging its
In other words, there's no clear fiscal advantage to an SE.
"Conforming tax law has not caught up with this new vehicle, so people won't be forming SEs in a hurry," Mendelssohn says.
If the laws of the home state change to the SE's disadvantage, the SE can change its home state with relatively little fuss and expense. Currently, companies in many European jurisdictions that wish to transfer their registered offices between states must undertake a costly and time-consuming liquidation process.
"There are and will be enthusiasts who will establish the SE as something that is successful and workable," Turnbull says. "If just two or three high profile companies enjoy a successful practical experience with the concept, it could very well take off."