Study Of The Free Flow Of Legal System Of Eu Companies

This paper is focusing on the legal system of corporate migration in the European Union (EU). EU keeps working on its goal of internal market without border barriers, the key of which includes the free movement of goods, persons, services and capitals. Free migration of companies is necessary to the accomplishment of this goal. At present, the legal framework for the regulation of corporate migration has been established, comprising the freedom of establishment, the judicial legislation by the European Court of Justice and the statutes and directives. Freedom of establishment is the main legal basis for corporate migration. The judgments of the European Court of Justice enable the free migration of head office. The statutes and directives are made to further improve the freedom of corporate migration. Directive on cross-border mergers of limited liability companies provides an important way for corporate migration. A proposal for directive on the cross-border transfer of the registered office of limited companies has been put into the agenda. Regulation on the Statute for a European company (SE) provides a model for future legislation. Based on the above analysis on the legal framework, the author brings forward and further analyses some of the important problems raised during corporate migration, including tax, protection on minority shareholders and creditors and employee involvement, and also puts out some suggestions for settlement.