EEIG differs from cooperatives and commercial companies in the CR by activity, which must meet the following conditions:
Positive definition of the activity:
- The activity is intended to alleviate or develop the economic activities of its members, as well as to improve and increase the results of those activities
- The EEIG's activities must be related to the economic activities of its members
- Activities of the EEIG may be only ancillary activities in relation to the economic activities of its members
Negative definition of the purpose:
- Purpose of the EEIG is not to achieve its own profit, but to support profit growth of members, EEIG can generate profit, but it should be divided among the members,
- EEIG may not exercise executive or supervisory power over the actions of its members or other business activities (cannot be controlling person within the meaning of § 66a of the Commercial Code), an EEIG may exercise in relation to its members and other persons EEIG coordination activities.
The EEIG cannot carry out the activity instead of its members, but at the same time its activity cannot be independent of the activities of its members. E.g. EEIG whose members are lawyers, cannot practice law itself but only ancillary activities, such as organizing training, clients seek etc. Most EEIG were founded in services, 90% are private sector.
The EEIG may or may not be a legal person, it depends on the legislation of a Member State, it is always possible participant in substantive and procedural relationships.
