Free Movement of Companies within the EU

Year 2012, Volume: 5 Issue: 1, 99 - 118, 01.01.2012

Ulvi Altınışık

Abstract

As the cross-border mobility of goods, services, labour, capital increased, the freedom of establishment of companies gained more attention in the EU. In the last decade, European company law has evolved significantly with the judicial contribution of the European Court of Justice. After its restrictive interpretation in Daily Mail the Court took a more liberal approach with regard to the freedom of establishment of companies. Under caselaw of the ECJ, with the aim of taking advantages of more appropriate rules, establishment of companies, their subsidies or branches in other Member States does not constitute an abuse of rights; furthermore it is referred to as exercise of freedom of establishment guaranteed by the Treaty. Once companies establish themselves or subsidies within the Union they enjoy the same rights as with the nationals of the host Member State. The Court took a liberal approach in terms of equal treatment and extended its scope so that it covers the taxation and social security protection of the employees as well

Keywords

EU Company Law, freedom of establishment of companies, equal treatment, european company, free movement of companies

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