Companies' Emigration and EC Freedom of Establishment

31 Pages Posted: 24 Dec 2007

See all articles by Federico M. Mucciarelli

Federico M. Mucciarelli

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Dipartimento di Economia Marco Biagi, Modena

Date Written: October 15, 2007

Abstract

After the ECJ's decisions in the cases Centros, Überseering and Inspire Art, a regulatory competition for corporate law can take place within the EU at the early stage of the incorporation of new companies. In the case Daily Mail, the ECJ considered a tax law restriction against the transfer abroad of the administrative seat as compatible with the freedom of establishment. For years, this decision has been considered as applicable to whatever restriction placed by the country of incorporation, even to the forced liquidation. This paper will address the issue at to whether freedom of establishment really allows Member States to place whatever limit to the emigration of nationally registered companies. I will argue that the freedom of establishment covers the transfer abroad of the administrative seat as well as of the registered office and that the country of incorporation can neither liquidate the company, nor consider the seat transfer as ineffective. Nonetheless, a Directive on identity preserving company law changes appears to be necessary, at least to avoid legal uncertainty and to protect interests which may be affected by the moving out of national companies.

Keywords: EC freedom of establishment, private international law, regulatory competition, transfer of the registered office, limits placed by the country of incorporation

JEL Classification: K22

Suggested Citation

Mucciarelli, Federico M., Companies' Emigration and EC Freedom of Establishment (October 15, 2007). Available at SSRN: https://ssrn.com/abstract=1078407 or http://dx.doi.org/10.2139/ssrn.1078407

Federico M. Mucciarelli (Contact Author)

Università degli studi di Modena e Reggio Emilia (UNIMORE) - Dipartimento di Economia Marco Biagi, Modena

Viale Berengario 51
Modena, Modena 41121
Italy

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