Case Note-Case C-81/09, Idrima Tipou AE v. Ipourgos Tipou kai Meson Mazikis Enimerosis, Judgment of the Court of Justice (Second Chamber) of 21 October 2010
16 Pages Posted: 6 Feb 2012 Last revised: 7 Feb 2012
Date Written: February 4, 2012
In this case, the Court was called to examine the concept of “limited liability” in EU company law and to say whether penalties imposed on shareholders of public limited companies operating television stations have a deterrent effect on investors from other Member States. The significance of this ruling lies in the interpretation of the First Company Law Directive and more specifically the notion of limited liability. The Court was called to examine whether EU company law has a sufficiently definite concept of the legal form of public limited company, which, like the legal orders of many Member States, recognizes a principle that the liability of a company with share capital is limited to the corporate assets. Another important aspect of this ruling is the examination of the national legislation under freedom of establishment and free movement of capital. Some useful conclusions are extracted out of this examination.
Keywords: limited liability, First Company Law Directive, First Council Directive 68/151/EEC, Case C-81/09, Idrima Tipou AE v. Ipourgos Tipou kai Meson Mazikis Enimerosis, EU fundamental freedoms
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