What are the exceptions to the basic rule which provide for substitution of the SE procedure?
According to Art.16 II the SE procedure will apply when: a) one of the merging companies has an average number of employees that exceeds 500 employees and is operating under an employee participation system (Art. 16 II); b) or if the national law of the member state in which the company resulting from the merger has its registered office provides for less participation than is operated in one of the merging companies (see Art. 16 II lit. a); c) or if there is not the same entitlement to exercise participation rights for employees of establishments in other member states as is enjoyed by those employees employed in the state in which the company resulting from the merger has its registered office (see Art. 16 II lit. b). In these three cases the SE procedure will apply.
