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Cardozo Journal of International and Comparative Law

Abstract

The Centros decision, rendered by the European Court of Justice in 1999, significantly advanced the principle of freedom of establishment within the European Union by prohibiting Member States from discriminating against companies incorporated in other Member States. The ruling effectively limited the ability of Member States to impose their own corporate laws on foreign companies operating within their borders, fostering a more integrated market. However, this decision also raised concerns about the potential for a "race to the bottom" in corporate law, as companies could now choose jurisdictions with more favorable regulations. The note argues that while the Centros decision promotes economic unity, the lack of uniform corporate laws across the EU may undermine this progress unless further harmonization efforts are undertaken.

Disciplines

Comparative and Foreign Law | Law

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