Open AccessEU Freedom Of Establishment And The Theories Of Incorporation In The Context Of Free Movement Of MNEs
Author(s) -
Yulduz Akhtamova
Publication year - 2020
Publication title -
the american journal of social science and education innovations
Language(s) - English
Resource type - Journals
ISSN - 2689-100X
DOI - 10.37547/tajssei/volume02issue12-53
Subject(s) - multinational corporation , free movement , treaty , context (archaeology) , european union , freedom of movement , member state , member states , international trade , business , treaty of lisbon , domestic market , state (computer science) , law and economics , political science , economic system , law , economics , geography , computer science , archaeology , algorithm
The creation of a single market with no internal borders where free mobility is guaranteed is one of the main goals of the European Union. Accordingly, along with certain fundamental freedoms, Treaty on the Functioning of the European Union (TFEU) provides the right of establishment for nationals as well as companies in a territory of another Member State. Accordingly, a decentralized nature of multinational enterprises (MNEs) involves various cross-border operations. The aim of this paper is to explore to what extent these transnational objectives of MNEs can be achieved under the freedom of establishment principle of EU law and incorporation theories of Member States. Firstly, it analyzes different scenarios of company mobility such as transfer of registered office or real seat and transnational mergers. Secondly, it examines the freedom of companies to choose legal forms of their cross-border establishment. Finally, it evaluates the most recent judgment in Polbud case in the light of decisions made in previous cases.