Rules for cross-border mergers are set out in the German Act on
the Co-Determination of Employees in Cross-Border Mergers
(Gesetz über die Mitbestimmung der Arbeitnehmer bei einer
grenzüberschreitenden Verschmelzung – MgVG).
The system of
employee participation is very similar to that which applies when
establishing an SE by way of a merger. However, there are some
important differences. Unlike the rules governing employee par-
ticipation in an SE, the Act on the Co-Determination of Employ-
ees in Cross-Border Mergers provides for employee participation
only at the company level, not at the operational level.