The Court Of Justice (CJEU) Case Law on Corporate Mobility Supporting Multi-National Enterprises

The Court Of Justice (CJEU) Case Law on Corporate Mobility Supporting Multi-National Enterprises
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The Court Of Justice (CJEU) Case Law on Corporate Mobility Supporting Multi-National Enterprises
The current dynamic world characterized by globalized activities enables many corporations to easily expand their businesses beyond their borders. With increased need for development, corporations are able to separate its business from its headquarters and establish its operations wherever it wants. As a result, corporation mobility has become a common phenomenon within international markets, strengthening competition within these markets. Cross-border trade within Europe has become the foundation of a common market.[Hopt Klaus, ‘Corporate Governance in Europe: A Critical Review of the European Commission's Initiatives on Corporate Law and Corporate Governance’ (2015) NYUJL & Bus 139.]
The free mobility of entities within the European markets has been enhanced by specific guidelines under the Treaty on the Functioning of the European Union (TFEU). Corporations among EU member states have benefited from this freedom of establishment under the European Union, setting specific rules of trade. Many multi-national enterprises have experienced minimum challenges during their cross border mobility because EU trade laws permit corporations to exercise the freedom of establishment.[Ringe Wolf-Georg, ‘Corporate Mobility in the European Union–a Flash in the Pan? An empirical study on the success of lawmaking and regulatory competition’ (2013) European Company and Financial Law Review 230.] [ibid 233]
Cross border, mobility has greatly supported multinational enterprises in several ways, Under the Treaty on the Functioning of the European Union, member states have benefited from effective corporate governance framework, creating a wider business environment within the international market.Through the court of justice, the EU has harmonized company laws to promote freedom of establishment, giving business freedom to operate easily beyond their borders.[Enriques Luca, ‘A Harmonized European Company Law: Are We There Already?’ ( 2017)International & Comparative Law Quarterly 1.] [ibid 6]
The court of justice of the EU (CJEU), is responsible for interpreting laws to ensure that they are applied uniformly across its member states. The CJEU also settles legal disputes between EU institutions and member countries.In addition, companies or individual entities can file complaints if any EU member state infringes on their rights. Because of its mandate, the CJEU has greatly promoted corporate mobility supporting multinational enterprise activities among EU member states.[Lombardo, Stefano, ‘Some reflections on freedom of establishment of non-profit entities in the European Union’(2013) EBOR 225.] [ibid 231]
According to the CJEU regulations, two important preconditions need to be fulfilled, which include mutual recognition and minimum standards .With these two pre-conditions, both small firms and multi-national corporations are permitted to select a legal seat anywhere within the EU markets, without facing any constraints in their state corporate law...