EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations make provision supplementing Regulation (EC) No 1082/2006 of the European Parliament and of the Council on a European grouping of territorial cooperation (O.J. No L210, 31.7.2006, p.19) (“the EC Regulation”) for the effective application of the EC Regulation in the United Kingdom.
The EC Regulation provides for the creation of a new form of body corporate, the European grouping of territorial cooperation (“EGTC”). It will be governed by the EC Regulation. An EGTC formed in the United Kingdom will also be governed by these Regulations.
Although directly applicable in the territory of the Community, the EC Regulation obliges each Member State to make arrangements in relation to a prospective member of an EGTC which is formed under its law and in relation to an EGTC the registered office of which is on its territory. The Regulations therefore:
(a)make provision as to the establishment of an EGTC and a UK EGTC (regulations 3, 4 and 5(1));
(b)contain provisions about what accounts and insolvency provisions are to apply to a UK EGTC (regulations 6 and 7);
(c)contain provisions needed to achieve the effective application of the EC Regulation (regulations 5(2) and (3), 9 and 10).
The EC Regulation also enables Member States to exercise options set out in the EC Regulation. Regulation 8 exercises the option in Article 7(3) of the EC Regulation.
An Impact Assessment has not been prepared for this instrument, as it has no impact on business, charities or the voluntary sector.
A Transposition Note is available from the Company Law and Governance Directorate, Department for Business, Enterprise and Regulatory Reform, 1 Victoria Street, London, SW1H 0ET. A copy has also been placed in the libraries of both Houses of Parliament.