Convergence, Competition, Centros and Conflicts of Law: European Company Law in the 21st Century
European Law Review, Vol. 27, pp. 47-59, 2002 (with postscript 2008)
19 Pages Posted: 23 Nov 2005 Last revised: 3 Dec 2008
In this article it is submitted that European company law will change remarkably. The conflict-of-law principles and the rules on the establishment of cross-border companies will become more liberal. The decision of the European Court of Justice in Centros is only the first step in this development. This will lead to some competition among rules. Although there are issues which might encourage businesses to incorporate in a foreign Member State, the result will not be a race to the bottom, because existing counter-incentives must not be disregarded and Member States may enact provisions to protect their domestic company law.
Keywords: Company law, corporate law, European law, conflict of laws, Centros, race to the bottom
JEL Classification: K22
Suggested Citation: Suggested Citation