EUROPEAN PRIVATE COMPANY AND EUROPEAN FOUNDATION: THE NEW EUROPEAN LEGAL FORMS.

The aim of this research paper is the study of legal status of the European Private Company and the European Foundation, the identification of features of the legal regulation of their establishment and operating activities, the identification of their advantages, as well as the historical analysis of proposals' development and analysis of underlying controversies on key matters of European legal forms developed for small and medium-sized enterprises and foundations. The methodological basis of the research is historical, comparative-legal, particular-legal analysis, as well as secondary data analysis. One of the most important findings is that the European Private Company and the European Foundation are vested with the prominent features of existing supranational legal entities. Firstly, the appropriate proposal relating to the status of supranational legal entity is directly applicable legal act and vest the supranational legal entity with legal capacity of European origin. The second feature is the availability of cross-border component in some circumstances for the foundation. The third feature is the ability to change the location within the EU Member States without the need for passing the liquidation procedure of the company in the Member State of the original location. At the same time, these European legal forms have a supranational character, because of the influence of the applicable national law of the EU Member States in the management of their activities, due to the lack of unified rules for governing all aspects of their activities, and because of the need to identify a single registry at EU level. Both the European Private Company and the European Foundation have a number of advantages that may ensure the growth and activities of these legal forms and their development in the Single Market. But because of the lack of feasible solutions of substantial controversies on several key matters both proposals were withdrawn. The research paper presents the conclusions and suggestions which can be presented as potential solutions of existing controversies. [ABSTRACT FROM AUTHOR]