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Essay example - The Comparison of Company Laws
Pages 9 (2259 words)
This essay critically analyzes Article 48 of the Treaty of Amsterdam, former article 58 of the Treaty of Rome, the ‘real seat’ theory and the ‘incorporation’ theory and the relevant case law to consider whether there is any contradiction to the freedom of establishment…
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The essay "The Comparison of Company Laws" presents the overview of Article 48 of the Treaty of Amsterdam, former article 58 of the Treaty of Rome, the ‘real seat’ theory and the ‘incorporation’ and the relevant case law to see where ECJ standing is on this issue.
Article 48 states: “‘Companies or firms formed in accordance with the law of a Member State and having their registered office, central administration or principal place of business within the Community shall, for the purposes of this Chapter, be treated in the same way as natural persons who are nationals of Member States.’
The treaty states that a legal person, such as a company or firm, must be treated in the same way as a natural person, therefore a company must be able to move between member states without any restrictions. Saying that it should be pointed out that the case of a company is more complicated, as unlike a natural person a company can stand at two different places simultaneously. Matters complicate even further when we consider that a company should be formed in accordance with the law of a Member State. Across Europe recognition of companies differs from Member State to Member State. Broadly speaking the Member States take two approaches at recognizing a company as having a valid legal personality. Most of them follow the real seat theory, others follow the incorporation theory. A country which follows the incorporation theory recognizes a company as a legal personality providing it, is incorporated in any of the Member States. ...
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