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Managing an EGTC

The following is an overview of the key management stages for an EGTC.

Managing an EGTC - what does Regulation (EC) No 1082/2006 say?

The information provided below covers the community legal framework applicable to the implementation aspects of an EGTC:

Budget: the annual budget, composed of running costs (+ operational costs if applicable), is to be adopted by the assembly (Art.11).

Management of public funds (including EU funds): the Member State where the EGTC has its registered office must organise control of the EGTC’s public funds management, using internationally accepted audit standards. Other Member States may also be involved in certain cases (Art.6).

Preparation of accounts: this procedure is governed by the law of the Member State where the EGTC has its registered office (Art.11).

Liquidation, insolvency, cessation of payments: these procedures are, in principle, governed by the laws of the Member State where the EGTC has its registered office.

Liability: the EGTC is liable for its debts. If the EGTC is not able to reimburse said debts itself, the members of the EGTC are then held liable (unless such members are subject to limited liability under their national law) (Art.12.2). Member States, when not members of an EGTC, cannot be held financially liable for the EGTC (Art.12.3).

Protection of public interests of the Member States: if an EGTC acts in contravention to the public interest(s) of Member States, this activity may be prohibited on the Member State’s territory or the member of the EGTC concerned may be withdrawn from the EGTC, unless the activity is stopped. There is still a possibility for the EGTC to request a judicial review of this decision (Art.13).

Dissolution by the competent authority of the Member State where EGTC is registered: if an EGTC acts outside of its tasks, unless the EGTC has proceeded to a rectification of the situation, the EGTC structure may be dissolved by this authority, after informing the Member State (Art.14).

Jurisdiction (Art.15)