Single-member private limited liability companies: Initial Appraisal of a European Commission Impact Assessment
This note seeks to provide an initial analysis of the strengths and weaknesses of the European Commission's Impact Assessment accompanying the Commission proposal for a Directive on single-member private limited liability companies. The context of the initiative is well presented. Efforts have been made to substantiate the problems identified and the various options considered are clearly described. Research and consultation appears to have been wide-ranging, although a breakdown of stakeholder views on each option would have been useful. The scope of the IA could have been broader, however. In particular, a more quantified and targeted cost-benefit analysis, especially with regard to costs for Member States and SMEs, and more data on how efficient different Member State measures have been in ensuring the smooth functioning of similar systems, would have strengthened the arguments. More specific evidence would also have been helpful with regard to the potential uptake of this initiative by the beneficiaries targeted.
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