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The Italian Supreme Court ( Corte di  Cassazione ) has issued an important decision on companies’ freedom of  establishment in the European Union (EU) and on jurisdiction over insolvency  proceedings. It was a typical forum-shopping case in insolvency situations, in  which a company decides to shift its registered office abroad before a court  from its original country declares the insolvency. The  Cassazione  did  not apply EC-Regulation 1346/2000 on crossborder insolvency, but declared the  company as liquidated because of the transfer of the registered office. This  solution leaves many questions unclear, both under EC-freedom of establishment  and under jurisdiction rules for cross-border insolvency.

european company and financial law review

The Transfer of the Registered Office and Forum-Shopping in International Insolvency Cases: an Important Decision from Italy – Case Note on the Decision “B &amp; C” of the Italian Corte di Cassazione –