Characteristics of Legal Regulation of European Private Company
Small and medium-sized enterprises play significant role in economic development of the EU. Therefore, the European legislator, aiming to encourage the development of small and medium-sized enter-prises, has taken the initiative to create the legal form of supranational legal entity which is specially developed for these enterprises. The Proposal for a Council Regulation on the Statute for a European Private Company was presented on 25 June 2008. The proposal aimed to establish a European Private Company Statute with limited liability and became a part of the program called the “Small Business Act” created by the European Commis-sion to improve access for SMEs to the Single Market and to promote their development in the EU. The article deals with the preconditions for the creation of European Private Company. The paper consistently examines the general provisions of the proposal for Regulation, as well as the advantages of the European Private Company, which define their current effectiveness in entrepreneurial activity. The peculiarities of legal regulation of Euro-pean Private Company are also analysed. The article discusses the development of the project and explains the reasons of deep controversies on key matters, which predetermined the withdrawal of the proposal.