S.L. 452.94 Art. 3Creation and function of special negotiating body. Cap. 318.

(1) When the management of the participating companies draw up a plan for the establishment of an SE whose registered office shall be in Malta, they shall as soon as possible after -

(a) the date of publication of the draft terms of merger; or

(b) the creation of a holding company; or

(c) after agreement has been reached on a plan to form a subsidiary or to transform into an SE, take the necessary measures to start negotiations with the representatives of the companies’ employees on arrangements for the involvement of employees in the SE.

(2) The competent organs of the participating companies shall make arrangements for the establishment of a special negotiating body, representative of the employees of the participating companies and concerned subsidiaries and establishments, which shall be constituted in accordance with regulation 4.

(3) The special negotiating body and the competent organs of the participating companies shall have the task of reaching an employee involvement agreement.

(4) In order to facilitate the negotiation procedures, the measures referred to in subregulation (1) which the management of the participating companies is obliged to take shall include the provision of all the relevant information about the identity of the participating companies, concerned subsidiaries or establishments, the number of their employees and any matters related thereto, to the employees’ representatives of the participating company, its concerned subsidiaries and establishments, or if no such representatives exist, to the employees themselves. Such measures shall be taken within three weeks from the date referred to in subregulation (1).

(5) For the purpose of these regulations, in order to calculate the number of employees employed in subsidiaries and establishments operating in Malta, account shall be taken of all employees, whether such employees are on a definite or indefinite contract, and including part-time employees whose part-time employment is their principal employment in respect of which social security contributions are payable under the Social Security

Act.