UNCITRAL, Working Group I: Micro, Small and Medium Enterprises
UNCITRAL
announced a new meeting for the Working Group I, it will start in 2014 (10-14 February, New York) and will cover micro, small and medium sized companies.
The content of the
agenda has not been announced yet, but there would be issues on the flexibility
and performance of the obligations required to these companies, their
definitions, growth incentives, ways of organization, etc. Furthermore,
although this work is pointing to three kind of companies, it should be noted
that the obligations of a microenterprise can be quite different from a
medium one. This is because in a medium company there are several workers
involved and its turnover is usually much more relevant than in a microenterprise.
In this field, the
European Union adopted a Recommendation concerning the definition of micro,
small and medium-sized enterprises. In this Recommendation we can see the big
difference between a medium-sized company and a microenterprise. For example,
the first one can be up to 250 workers, while the latter can only reach 10 workers.
(Medium) This
Recommendation, adopted on May 2003, first gives a concept for the medium-sized
companies: “The category of micro, small
and medium-sized enterprises (SMEs) is made up of enterprises which employ
fewer than 250 persons and which have an annual turnover not exceeding €50
million, and/or an annual balance sheet total not exceeding €43 million”.
Afterwards, the
Recommendation define small and microenterprises.
(Small) By small
company is meant: “Within the SME
category, a small enterprise is defined as an enterprise which employs fewer
than 50 persons and whose annual turnover and/or annual balance sheet total
does not exceed €10 million”.
(Micro) Finally,
microenterprise is defined as: “Within
the SME category, a microenterprise is defined as an enterprise which employs
fewer than 10 persons and whose annual turnover and/or annual balance sheet
total does not exceed €2 million”.
One interesting
question that could address the Working Group, is the diversity of existing
legal forms used in SMEs. Then, while the volume of business grows the company
is forced, in practice, to use certain legal structures to limit the liability
of the partners. However, until companies do not acquire certain volume its
structure varies widely, making it difficult to give a general treatment to all
the “small”-sized enterprises.