Participation If the two parties do not reach a satisfactory arrangement, a set of standard principles set out in the annex to the directive becomes applicable. Several models of participation are possible: firstly, a model in which the employees form part of the supervisory board or of the administrative board, as the case may be; secondly, a model in which the employees are represented by a separate body; and finally, other models to be agreed between the management or administrative boards of the founder companies and the employees or their representatives in those companies, the level of information and consultation being the same as in the case of the second model. The general meeting may not approve the formation of an SE unless one of the models of participation defined in the directive has been chosen. The employees' representatives must be provided with such financial and material resources and other facilities as enable them to perform their duties properly. With regard to a European company formed through a merger, the standard principles relating to worker participation will apply where at least 25% of the employees had the right to participate in decisions before the merger. Here a political agreement proved impossible until the Nice summit in December 2000. The compromise adopted by the heads of state or governments allowed a member state not to apply the directive to SEs formed from a merger, in which case the SE could not be registered in the member state in question unless an agreement had been concluded between the management and employees, or that no SE employee had the right of participation before the formation of the SE.
participation if the two parties do not reach a satisfactory arrangement a set of standard principles set out in the annex to the directive becomes applicable several models of participation are possible firstly a model in which the employees form part of the supervisory board or of the administrative board as the case may be; secondly a model in which the employees are represented by a separate body; and finally other models to be agreed between the management or administrative boards of the founder companies and the employees or their representatives in those companies the level of information and consultation being the same as in the case of the second model the general meeting may not approve the formation of an se unless one of the models of participation defined in the directive has been chosen the employees' representatives must be provided with such financial and material resources and other facilities as enable them to perform their duties properly with regard to a european company formed through a merger the standard principles relating to worker participation will apply where at least 25% of the employees had the right to participate in decisions before the merger here a political agreement proved impossible until the nice summit in december 2000 the compromise adopted by the heads of state or governments allowed a member state not to apply the directive to ses formed from a merger in which case the se could not be registered in the member state in question unless an agreement had been concluded between the management and employees or that no se employee had the right of participation before the formation of the se