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Council Regulation (EEC) No 2137/85Show full title
Council Regulation (EEC) No 2137/85 of 25 July 1985 on the European Economic Interest Grouping (EEIG)
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Article 3U.K.
1.The purpose of a grouping shall be to facilitate or develop the economic activities of its members and to improve or increase the results of those activities; its purpose is not to make profits for itself.
Its activity shall be related to the economic activities of its members and must not be more than ancillary to those activities.
2.Consequently, a grouping may not:
(a)exercise, directly or indirectly, a power of management or supervision over its members' own activities or over the activities of another undertaking, in particular in the fields of personnel, finance and investment;
(b)directly or indirectly, on any basis whatsoever, hold shares of any kind in a member undertaking; the holding of shares in another undertaking shall be possible only in so far as it is necessary for the achievement of the grouping's objects and if it is done on its members' behalf;
(c)employ more than 500 persons;
(d)be used by a company to make a loan to a director of a company, or any person connected with him, when the making of such loans is restricted or controlled under the [F1law of the appropriate part of the United Kingdom relating to] companies. Nor must a grouping be used for the transfer of any property between a company and a director, or any person connected with him, except to the extent allowed by the [F1law of the appropriate part of the United Kingdom relating to] companies. For the purposes of this provision the making of a loan includes entering into any transaction or arrangement of similar effect, and property includes moveable and immoveable property;
(e)be a member of [F2a] European Economic Interest Grouping.
[F3(f)be a member of another UK Economic Interest Grouping;
(g)have a European Economic Interest Grouping as a member.]
Textual Amendments
F1Words in Art. 3(2)(d) substituted (31.12.2020) by The European Economic Interest Grouping (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1299), regs. 1, 36(a); 2020 c. 1, Sch. 5 para. 1(1)
F2Word in Art. 3(2)(e) substituted (31.12.2020) by The European Economic Interest Grouping (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1299), regs. 1, 36(b); 2020 c. 1, Sch. 5 para. 1(1)
Textual Amendments
F1Words in Art. 3(2)(d) substituted (31.12.2020) by The European Economic Interest Grouping (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1299), regs. 1, 36(a); 2020 c. 1, Sch. 5 para. 1(1)
F2Word in Art. 3(2)(e) substituted (31.12.2020) by The European Economic Interest Grouping (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1299), regs. 1, 36(b); 2020 c. 1, Sch. 5 para. 1(1)
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