Logos has narrowed its locations where it will establish its first foreign subsidiary in Europe to one of three countries, France, Germany, or England (the United Kingdom). Logos has asked your law firm to recommend which of these three jurisdictions it should choose. As previously mentioned, Logos is a privately held company and is not interested in a public ownership structure in Europe, although Logos is open to forming a joint venture with a suitable partner. For example, Logos is considering as a potential partner an old-line UK company, Boats, PLC, with its headquarters in Newcastle Upon Tyne, and a line of beauty products and soaps that it markets throughout the UK through an established distribution network. Another potential partner is La Jeunesse, an up-and-coming Marseilles manufacturer, and RTK Cosmetic GmbH, a large, well-established Munich company. Logos is also open to the idea of acquiring a foreign company in France, Germany, or England. An acquisition will likely lead to the layoff of some workers of the acquired company.

Logos is owned by the Jackson family of Kansas City with the patriarch, James Sr., heading up a small group of his family members who form an inner management circle. James is known to be very shrewd but also somewhat eccentric. Although he "retired" many years ago and has no official title, he continues to run management meetings and is consulted on all important strategic decisions. One of James's most eccentric habits is that he often travels unannounced to the various subsidiaries of Logos around the United States and will stay for weeks at a time to review production and management. When some of these subsidiaries first complained to James Jr., the current CEO, James Jr. replied that he fully supports whatever his father wishes to do. James Sr. also cherishes the warm family-like atmosphere of his company and is viewed as a benevolent patriarch by Logos employees. He will often spend hours on the plant floor chatting with employees and will regularly treat a large group of employees and their families to a steak dinner. James has also always championed generous compensation and vacation packages for his employees who seem to be content and have had little interest in organizing a labor union or demanding a voice in management affairs.

The Jackson family would like to use the same flexible "approach" to management in Europe. In fact, James Sr. has already mentioned how much he is looking forward to spending time in his plants in Europe.

Where should the Jacksons establish their EU company? What about an acquisition?

What about setting up a European Company, which is a creature of EU law and not subject to the laws of any individual EU nation?

Answer rating: 100% (QA)

The decision on where to establish Logos EU subsidiary involves a careful consideration of various factors including legal business and cultural aspec... View the full answer