European Cooperative Society
A European Cooperative Society (Societas Cooperativa Europea/SCE) is a cooperative organisation operating on a Europe-wide basis and governed by EC law directly applicable in the Member States, rather than by national law. Legislative proposals for a regulation laying down the rules on the establishment and operation of the European Cooperative Society and a directive on worker involvement were agreed in principle in a meeting of the Council of Ministers on 2-3 June 2003, incorporating many of the amendments proposed by the European Parliament, which had examined the proposed Directive (14 May 2003). Arrangements for involving employees in the SCE must be negotiated in conjunction with the establishment process between the managements of the participating entities and representatives of their employees in the different Member States. Failure to reach agreement before the SCE is registered will lead to the SCE being governed by a set of subsidiary rules, similar to those of the directive on the European company (Societas Europea/SE), directive on employee information and consultation and, where appropriate, board-level participation, with some adjustments to take account of the differences in establishing an SCE and an SE.