Unibail-Rodamco adopts European Company status

The shareholders of Unibail-Rodamco have approved the conversion of the legal framework of the largest listed real estate group in Continental Europe into a Societas Europaea, or European Company.

The proposal received overwhelming backing during the company's annual general meeting on 14 May. Shareholders also renewed the terms of all the members of the supervisory board and the management board headed by CEO Guillaume Poitrinal. However, chief investment officer Willem Ledeboer is leaving the management board 'to pursue other personal and business interests'.

Unibail-Rodamco was created two years ago from the merger of France-based office and convention centre group Unibail and Dutch shopping centre specialist Rodamco. The merged company is the first member listed on the CAC 40 index in Paris to convert to the status.

The company will change its name to Unibail-Rodamco SE once the new status is registered with the Trade and Companies Register of Paris. The group will continue to trade on the CAC 40 in Paris and on the AEX in Amsterdam under the name 'Unibail-Rodamco'.

Unibail-Rodamco has a pan-European portfolio with employees in 12 countries, a spokesman for the company said. 'While day-to-day operations will remain the same, the conversion is a manner of embracing the group's European identity and stating it strongly,' he added.

The legal framework for European Company status was developed by the EU in October 2001 'to create a European company with its own legislative framework.' The status is designed to allow companies incorporated in different member states to merge or form a holding company, while avoiding the 'legal and practical constraints arising from the existence of 27 different legal systems'.

One of the most significant aspects of the status is that it enables the creation of a single European-wide works council to represent the interests of firm's employees based in different countries in place of individual national councils.

Other major companies in Europe slated to make the switch to Societas Europaea include insurance giant Allianz and German luxury car maker Porsche.