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1.—(1) The management of the SE must arrange for the establishment of a representative body in accordance with the following provisions.
(2) The representative body must be composed of employees of the SE and its subsidiaries and establishments.
(3) The representative body must be composed of one member for each 10%, or fraction of 10%, of employees of the SE, its subsidiaries and establishments employed for the time being in each EEA state.
(4) The members of the representative body must be elected or appointed by the members of the special negotiating body.
(5) The election or appointment is to be carried out by whatever method the special negotiating body decides.
2. Where its size so warrants, the representative body must elect a select committee from among its members comprising at most 3 members.
3. The representative body must adopt rules of procedure.
4. The representative body must inform the competent organ of the SE of the composition of the representative body and any changes in its composition.
5.—(1) Four years after its establishment, the representative body must decide—
(a)whether to open negotiations with the competent organ of the SE to reach an employee involvement agreement, or
(b)whether the standard rules in Part 2 of this Schedule and, where applicable, Part 3 of this Schedule are to continue to apply.
(2) Where a decision is taken under sub-paragraph (1) to open negotiations, regulations 14 to 16 and 18 apply to the representative body as they apply to the special negotiating body.
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