The Consequences of Brexit for Companies and Company Law

57 Pages Posted: 3 Mar 2017 Last revised: 12 Apr 2017

See all articles by Peter Böckli

Peter Böckli

Böckli Bodmer & Partners

Paul L. Davies

University of Oxford- Faculty of Law

Eilis Ferran

University of Cambridge - Faculty of Law; European Corporate Governance Institute (ECGI)

Guido Ferrarini

University of Genoa - Law Department and Centre for Law and Finance; European Corporate Governance Institute (ECGI)

José M. Garrido Garcia

International Monetary Fund (IMF); University of Castilla-La Mancha (Spain)

Klaus J. Hopt

Max Planck Institute for Comparative and International Private Law; European Corporate Governance Institute (ECGI)

Adam Opalski

University of Warsaw - Faculty of Law and Administration

Alain Pietrancosta

Sorbonne Law School

Markus Roth

University of Marburg - Faculty of Law

Rolf Skog

Göteborg University - Department of Law

Stanislaw Soltysinski

Komisja Kodyfikacyjna Prawa Cywilnego; Sołtysiński Kawecki & Szlęzak, Legal Advisors

Jaap W. Winter

Vrije Universiteit Amsterdam; University of Amsterdam; Insead

Martin Winner

Vienna University of Economics and Business - Department of Business Law

Eddy Wymeersch

Ghent University - Financial Law Institute; ECGI

Date Written: March 2, 2017

Abstract

The consequences of the Brexit vote will be felt throughout the legal systems, both in the UK and in the EU. The legal consequences of the Brexit decision and the process which will lead to the withdrawal of the UK, raises numerous questions many of which are in the process of being analysed, and possibly solved. In the field of company law, with respect to cross-border matters, UK companies will be exposed to national laws in the EU States after the Treaty freedom of establishment will not further apply. This may lead to tensions between the two systems of recognition of foreign companies, i,e. the incorporation theory and the seat theory. Foreign companies active in seat jurisdictions may in the future be disqualified if their seat is effectively established in the seat State. Access may become more difficult, not on the basis of company law, but of sectoral regulations. In other part of the regulatory system, such as the rules on cross-border mergers, on rights of shareholders in listed companies, or disclosures to be made, equivalence of rules, as decided by the European Commission, will be the key factor. Additional issues will arise for the cross-border recognition of accounting standards and for the activity of auditors.

Keywords: Brexit, freedom establishment, incorporation or seat theory, cross border mergers, auditors, listed companies

JEL Classification: F15, F55, G28, K2

Suggested Citation

Böckli, Peter and Davies, Paul L. and Ferran, Eilis and Ferrarini, Guido and Garrido Garcia, José M. and Hopt, Klaus J. and Opalski, Adam and Pietrancosta, Alain and Roth, Markus and Skog, Rolf R. and Soltysinski, Stanislaw and Winter, Jaap W. and Winner, Martin and Wymeersch, Eddy O., The Consequences of Brexit for Companies and Company Law (March 2, 2017). University of Cambridge Faculty of Law Research Paper No. 22/2017. Available at SSRN: https://ssrn.com/abstract=2926489 or http://dx.doi.org/10.2139/ssrn.2926489

Peter Böckli

Böckli Bodmer & Partners ( email )

St. Jakobs-Strasse 41
PO Box 2348
Basel, 4002
Switzerland

Paul L. Davies

University of Oxford- Faculty of Law ( email )

Harris Manchester College
Oxford, OX1 3TD
United Kingdom

Eilis Ferran

University of Cambridge - Faculty of Law ( email )

10 West Road
Cambridge CB3 9DZ
United Kingdom
+ 44 1223 338335 (Phone)
+ 44 1223 338340 (Fax)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Guido Ferrarini

University of Genoa - Law Department and Centre for Law and Finance ( email )

Via Balbi, 22
16126 Genova, 16100
Italy
+39 010 209 9894 (Phone)
+39 010 209 9890 (Fax)

HOME PAGE: http://www.clfge.org

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

HOME PAGE: http://www.ecgi.org

José M. Garrido Garcia

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

University of Castilla-La Mancha (Spain) ( email )

Toledo 45071
Spain

Klaus J. Hopt

Max Planck Institute for Comparative and International Private Law ( email )

Mittelweg 187
D-20148 Hamburg
Germany
+49 40 41 90 02 05 (Phone)
+49 40 41 90 03 02 (Fax)

European Corporate Governance Institute (ECGI)

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

Adam Opalski

University of Warsaw - Faculty of Law and Administration ( email )

ul. Wybrzeże Kościuszkowskie 47
Warszawa, 00-347
Poland

Alain Pietrancosta

Sorbonne Law School ( email )

17, rue de la Sorbonne
Paris, IL 75005
France

Markus Roth

University of Marburg - Faculty of Law ( email )

Universitaetsstrasse 6
Marburg, D-35037
Germany

Rolf R. Skog

Göteborg University - Department of Law ( email )

Viktoriagatan 30
Box 650
Göteborg, 40530
Sweden
+46 31 7866990 (Phone)

HOME PAGE: www.law.gu.se

Stanislaw Soltysinski

Komisja Kodyfikacyjna Prawa Cywilnego ( email )

Ujazdowskie Ave. No. 11
Warsaw, 00-950
Poland

Sołtysiński Kawecki & Szlęzak, Legal Advisors ( email )

Wawelska Str. No. 15B
Warsaw, 02-034
Poland

Jaap W. Winter

Vrije Universiteit Amsterdam ( email )

De Boelelaan 1105
Amsterdam
Netherlands
+31653978419 (Phone)

University of Amsterdam ( email )

Oude Manhuispoort
Amsterdam
Netherlands

Insead ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

Martin Winner

Vienna University of Economics and Business - Department of Business Law ( email )

Welthandelsplatz 1
Vienna, A-1020
Austria

Eddy O. Wymeersch (Contact Author)

Ghent University - Financial Law Institute ( email )

Universiteitstraat 4
Gent, B-9000
Belgium
+32 9 264 68 27 (Phone)
+32 9 264 68 55 (Fax)

HOME PAGE: http://www.law.ugent.be/fli

ECGI ( email )

c/o ECARES ULB CP 114
B-1050 Brussels
Belgium

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