On The Multi-level Coordination Mechanism For European Company Law

European company law is a multi-level legal coordination mechanism, which is composed ofthe legislative and judicial co-ordination at EU level, a common component of competitionlegislation and unofficial manner of coordination at member state level. On the one hand, the EUinsists on hard law harmonization, namely the development of European company law bysupranational institutions, and only the core areas of company law with cross-border coordinationof factors in order to promote the free movement of companies within the EU. The reason why theEU focuses on the coordination of the company’s external relations is that its legal consequencesare closely related to the interest of a third person outside the company. Coordination of MemberStates third party protection provisions of European company law is a necessary means to achievethe Company’s shareholders and creditor protection objectives. In the field of internal relations ofCompany, the EU tends to coordinate the implementation of soft law, in particular through thecorporate governance guidelines, bypassing the limitations of hard law, prompting the company toobtain the core areas of governance coordination, and making common law and civil law countriesthe convergence of corporate governance standards. The EU uses the means of coordination of EUregulations for unity in the conflict law of its members to seek a unified law of the Member States,but the relevant provisions in the implementation and application of specific laws are inseparablefrom the substantive law of the relevant regulations of its Member States. However, the functionalcharacteristic of these directives and regulations is precisely the root of many problems, because itmakes the process of legal harmonization and integration activities slower. To this end, the EUchanged the basic concept of company law harmonization. So the EU’s focus from protection bysecondary legislation to prevent the shareholders and creditors of the abuse of power has beentransferred to the establishment of a unified legal framework. Legal harmonization is no longerpursuing the ultimate goal of the European Commission, but merely a means to overcome thecrisis, which serve specific political goals. The main purpose of the instruction as a means ofco-ordination is not to undermine the diversity of national legal systems. On the contrary, it isprecisely in order to protect this diversity. Coordination of EU secondary legislation constitutesthe core of a rooftop European company law, under this, the legislation of its member statescompete with each other. The Legislative competition in the Member States urges them to learnfrom each other based on common goals and to practice innovation in the discovery, so that theycan find an institutional framework consistent with their national policies. Through theCoordination Mechanism of the European Court of Justice, the EU supplements the traditionallegislative omissions at the EU legislative level of coordination and prevents the competitionbetween Member States running to the bottom.On the other hand, the EU adopted an unofficial bottom-up coordination mechanism to bypassthe limitations of hard law, to counsel and guide the legislative competition at the Member Stateslevel and legislative harmonization at the EU level, to provide effective complement for thelegislation interaction and Interpenetration of European company law at the EU level and MemberStates level and to establish more affordable institutional framework for activities of companieswithin Europe. And in case that the traditional coordination methods are unable to operateeffectively, the unofficial coordination is trying to find a balance. Unofficial coordinated Europeanapproach to the Act itself has a unique academic research value. Interrelationship and interaction between different legal coordination levels of the European company law have the greatestoriginality.This multi-level coordination mechanism provides a thought that coordination of Europeancompany law does not have to just stick to a unique solution, because with the development of thetimes, the degree of coordination of the European company law not only upgraded in content anddepth, but also presents a coordinated manner in the diversity and complexity of the features.Competition and Coordination, official and unofficial regulations are not antagonistic butcomplementary. Multi-level coordination mechanism within the European company law promotescompetition and modernization of company law as a function of lubricating fluid, so that theinteraction between the different levels can smoothly proceed. Coordination Mechanism of theEuropean company law is not just a means of legislation, which encompasses the whole process oflegislation itself to law enforcement. The Values of the strict distinction and mutual cooperationbetween the legislative body and the implementation main body, the legislative procedure andimplementation procedures, regulatory convergence and regulatory coordination is a kind ofdynamic, comprehensive innovation activities of EU legislation.Understanding and study of multi-level coordination of European company law mechanismscannot simply imitate the introduction, as it is experiencing a lot of change and a mechanism forthe effective functioning of the established modern company law in accordance with internationalstandards. Chinese company law can get inspiration from which a complete legal mechanism isnot certain aspects of the company’s promotion, but the idea of legislation to the judicial practice,from the official level to the effective integration of the non official level, the results ofcooperation, but the legislative concept to judicial practice, the level of co-operation from officialto unofficial level, the effective integration of the results.