LAW

Law

Law

Introduction

This paper best features the gap between the possibilities for UK-companies to completely exploit their flexibility of establishment on the one hand and the obstacles raging torrent from the mostly nationwide administration of data filing obligations through enterprise lists on the other hand. From the issue of outlook of businesses, this gap partially neutralises the efforts replayed both in UK guideline and ECJ jurisprudence to assurance the flexibility of establishment. (Wymeersch 2003:661)Companies are not only often obliged to document the identical data in distinct nations but, due to the need of data distributing between the nations in which they are established, investors, creditors and other stakeholders may bear data asymmetries.

Regarding the filing of company data, company management may greatly benefit from the automation of the branch registration process. It would enable the host business register to remotely retrieve the documents required to process a branch registration, and potentially allow the parent company to register a branch in another member state directly from its home register (a one-stop-shop in terms of delivery of corporate data). Following the third approach as explained in section 4.3, the system would neutralize most costs related to duplications in disclosure requirements enforced by the Eleventh Company Law Directive. It also opens up perspectives in view of the forthcoming Directive on the transfer of the registered office, the transfer of the seat of SE's, cross-border mergers etc.

Discussion

One of the main objectives of the British Union is to promote throughout the Community a harmonious, balanced and sustainable development of economic activities (Article 2 EC Treaty). The creation of a single British market, of which the internal market is a fundamental component, is believed to be the most important way to achieve this ambitious goal (Article 3, 1), c) EC Treaty). By the abolition of obstacles to the free movement of goods, persons, services and capital, the British Union wishes to make of the integrated British market world's most competitive and dynamic market (Lisbon British Council 2000).

As a part of this project, the British Community is aiming at the 'transnationalisation' of companies, i.e. the process by which companies extend their economic activities to other Member States than those where they are incorporated. 1 In this way competition between companies or firms deploying economic activities in the British Union will increase. This should in turn result in better company performance and thus in lower prices for consumers. (Wymeersch 2003:661) It is precisely with this objective that the EC Treaty grants the freedom of establishment to 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 (which we call hereafter 'UK-companies') (Article 43 in combination with 48 EC Treaty). Hence, the freedom of establishment has a clear economic function as it is one of the most significant tools to increase the mobility of factors of production.

An overview of the content of the freedom of establishment as currently envisaged by ...