Uni Graz
2009
Stefan Thomas Pirker
The Master's thesis by Stefan Thomas Pirker, titled "Formation and Financing of the European Cooperative Society," explores the legal framework of the European Cooperative Society (SCE) established by EU Regulation 1435/2003. It outlines the historical development of cooperative structures in Europe, highlighting early resistance and the inadequacies of previous frameworks like the European Economic Interest Grouping. The SCE combines traditional cooperative principles with modern corporate elements, emphasizing member support, democratic control, and a flexible governance structure. Key findings reveal the SCE as the first supranational cooperative legal form in the EU, enabling cross-border activities while adhering to core cooperative values. The thesis underscores the significance of the SCE in fostering cooperative enterprises within an increasingly integrated Europe, balancing historical traditions with contemporary business needs and contributing to a comprehensive understanding of cooperative law and practice.
This text is a 2009 Master's thesis in Law (Diplomarbeit) by Stefan Thomas Pirker at the Karl-Franzens-University Graz, Austria, titled "Formation and Financing of the European Cooperative Society" (Gründung und Finanzierung der Europäischen Genossenschaft). The thesis examines the legal framework of the European Cooperative Society (SCE - Societas Cooperativa Europaea) established by EU Regulation 1435/2003.
Key Findings
Historical Development
- Early attempts to create a European cooperative framework faced resistance, particularly from German cooperative associations
- The European Economic Interest Grouping (EWIV) introduced in 1985 proved insufficient as a substitute for cooperatives
- After multiple drafts and negotiations, the SCE regulation was finally enacted in 2003
Core Principles
- The SCE combines traditional cooperative principles with modern corporate elements
- Key principles include:
- Member promotion and support
- Identity principle (members are both owners and users)
- Democratic control
- Priority of members over capital
- Voluntary membership
Structural Elements
- Minimum capital requirement
- Possibility for non-member business
- Flexible voting rights system
- Option to include investing members
- Various founding methods (new formation, merger, conversion)
Innovations
- First supranational cooperative legal form in the EU
- Combines elements of national cooperative laws with European corporate law
- Allows cross-border cooperative activities
- Provides flexibility in governance and capital structure
Practical Significance The thesis analyzes how the SCE represents a significant development for cooperative enterprises in Europe by providing a supranational legal framework while maintaining core cooperative principles. It highlights the balance between traditional cooperative values and modern business needs.
Context
This academic work was written during a period of increasing European integration and growing interest in alternative business models. It examines how European law adapted traditional cooperative principles to create a modern, cross-border legal structure while preserving cooperative values. The thesis provides a comprehensive analysis of both the historical development and practical implementation of the SCE regulation.