In an age of rapid globalization and in a business environment of the "common
world market," the problem of control over Israeli companies, often operating
in dozens of countries with different legal systems, is becoming increasingly
commonplace.
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 Every multinational company is aware of the inherent difficulty in distributing
its business activities around the globe. There is no question that all types
of legal proceedings -- from examining the ramifications of changes in
European legislation regarding contracts and agreements to relocating workers,
and many other issues -- form the essential foundation in planning the work
of a corporation.
The laws in each of the many European countries differ from one another in
many ways, as do legal court procedures and labor laws. All these have ramifications
for contract-based relationships and for daily commercial activity. Many
corporations operate in a "vacuum" of legal ambiguity, while accumulating
risks which often pose a latent danger to the corporation's very existence.
The suggested "pan-European" legal model provides Israeli companies
and managers with legal services in Israel
and abroad, an effective, all-inclusive, fully transparent instrument of
control, and optimal control
over legal procedures they conduct in various countries abroad.
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| Optimal Structure |
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The optimal structure of a multinational business corporation must include
an Israeli-European legal entity that has both access to
the management in Israel and legal branches throughout Europe. The role of
such an entity—
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examine legal proceedings regarding the company and its subsidiaries
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dictate a uniform policy
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formulate and create uniform legal documents (adjusted to different
legal
systems)
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guide and supervise attorneys working under the auspices of the
corporation in the various countries
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implement the general interests of the corporation while handling
files individually
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provide added value to the variety of legal claims
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improve protection and securities given to the company
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broaden the legal horizons of those operating in the company's
name
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From the "CEO's chair" in Israel, the company will --
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broaden the legal horizons of those entities operating
in the company's name
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obtain essential information and dictate legal proceedings in
real time at any given moment regarding all legal activity throughout the
European continent
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examine legal reports by requested sectors and cross-sections
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assess risks and improve chances to construct an integrated
set of contracts
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request legal written opinions on all required issues in every
relevant country
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produce legal documents in all relevant languages (in addition
to Hebrew)
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This structure is not just a matter of efficiency
or a change to save on overhead, but a radical change in the perception
and improvement of management capability.
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| Changes in Legislation – and the European
Constitution |
 Attention has been given in Europe recently to the legislation of the
EU, whose regulations have begun penetrating the laws of the specific countries.
The EU, from its headquarters in Brussels, Belgium, and the European court,
are gaining a central place in the legal and commercial awareness of the
countries of the Union -- and even in those countries expected to join
the EU in the next few years. Paying close attention to these changes should
be highly significant to Israel-base management.
The dramatic changes which are dictated by a country's entrance into
the EU require preliminary legal preparation (even for Israeli corporations
involved in the activity of a country which is planning to
join the EU). This necessitates a change in understanding contracts, upgrading
securities, understanding changes in labor relations, paying attention
to parameters of environmental quality and looking at the ramifications
of monetary changes. And it means doing all of this sooner rather than
later!
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| European Companies (SE) |
Recently, a regulation was legislated arranging for the establishment
of a new legal entity called "the European Company" (SE). This
entity is not simply a company in a particular country, but rather
a pan-European company, which can conduct business in any one
of the countries of the EU as if it were a local company, and can enjoy
a variety of advantages while maintaining efficiency and saving resources.
Registration as an SE involves certain prerequisite conditions; however,
multinational Israeli corporations which meet the conditions will find many
incentives for activity in this framework. It is worthwhile to examine this
issue to see if it is advantageous for your company.
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About the author: Attorney Avi Omer of law
firm Omer Yuster & Co. has
been providing legal services to Israeli companies for more than 15 years.
In addition to the legal and administrative staffs in its offices in Israel's
center and southern regions, the firm's network of attorneys works in many
countries throughout Europe, specializing in various branches of commercial
law and maintaining accessibility to commerical and government and legal
bodies. This unique combination of the firm's
Israeli and European offices provides optimal legal services
for every multinational Israeli company, for every business entity operating
throughout Europe, and for any European corporation
operating in Israel.
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