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Does the European Company Prevent the ‘Delaware Effect’?
Author(s) -
McCahery Joseph A.,
Vermeulen Erik P. M.
Publication year - 2005
Publication title -
european law journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.351
H-Index - 54
eISSN - 1468-0386
pISSN - 1351-5993
DOI - 10.1111/j.1468-0386.2005.00288.x
Subject(s) - lawmaking , incentive , member states , law , economics , business , law and economics , political science , european union , market economy , international trade , legislature
This article analyses the history of EU company law and locates a stable ‘non‐competitive equilibrium’. This equilibrium follows from Member States that founded the EU unwilling to give up their lawmaking authority regarding company law issues. From the outset, Member States were determined to prevent the ‘Delaware effect’. Since then, stability has ruled. The agenda‐setting in EU company law has changed little during the existence of the EU. Operative incentives, market structure and regulatory results have been more constant than dynamic, even as the recent enactment of the European Company has triggered discussion about competitive lawmaking in Europe.