Explanatory note

These Regulations make provisions in respect of European Economic Interest Groupings formed under article 1 of the Council Regulation (EEC) No. 2137/85, which provides a legal framework for groupings of natural persons, companies, firms and other legal entities to enable them to co-operate effectively when carrying on business activities across national frontiers within the European Community. Such groupings, which have their official address in Great Britain, when registered there under these Regulations are bodies corporate and their members have unlimited joint and several liability for the debts and liabilities of such groupings.

The EC Regulation is directly applicable in UK law but these Regulations are necessary for implementation in part of the Community obligations and for other purposes mentioned in section 2(2) of the European Communities Act 1972. In particular certain provisions are left for national law by the EC Regulation. Articles 35 and 36 provide that groupings shall be subject to national laws governing their winding up and the conclusion of their liquidation and insolvency and cessation of payments. Regulation 8 of these Regulations provides for modifications to Part V of the Insolvency Act 1986, where a grouping is wound up as an unregistered company under Part V. Accordingly the Court has power to wind up a grouping in the circumstances set out in articles 31 and 32 or the grouping may be wound up voluntarily in the circumstances set out in article 31; and a grouping is dissolved after 3 months of the receipt by the registrar of a notice of the conclusion of the liquidation, whether or not the grouping has been wound up by the Court.