Elcoteq Proposes Conversion Into a European Company
Under new European rules, Elcoteq Network Corp.’s board of directors is proposing that the company be converted into a European Company (Societas Europaea, SE). The move by the manufacturer of electronics for communications technology is in response to the Act on the European Company, which came into force in Finland in October. The SE form of company will allow a single corporate structure throughout the 28 countries of the European Economic Area (EEA) instead of having several separate subsidiary legal entities as at present.
In Elcoteq’s case the new form of company will be achieved by conversion, the company’s name changing to Elcoteq Network SE. The board of directors has drawn up a conversion plan and a report, both of which will be registered and announced in the manner required by Finnish law. It is expected that the most probable date for conversion will be in the spring of 2005. As an SE, Elcoteq will be able to merge its subsidiaries in different countries with the parent company, which will reduce the amount of central administration necessary. It also believes the SE form of company will have a positive effect on its image and will thus support its business operations.
Commenting on the initiative the company’s president and CEO said, “Elcoteq wishes to be among the first companies to exploit the benefits of conversion into a European Company. This will support our reputation as a pioneer and global operating company, as well as creating greater international visibility both in Europe and elsewhere in the world. While respecting its Finnish roots, the company wishes to forge a clear European identity for itself.”