Ways to resolve conflicting issues of the status of legal entities in EU law and in the legislation of some of its member states

Keywords: the status of a legal entity, the criterion of incorporation, the criterion of settlement, the European Union, the principle of freedom of establishment. harmonization of legislation

Abstract

entities in EU member states.
Many EU Member States use two criteria for determining the personal law of a legal entity: the settlement criterion and the incorporation
criterion. However, the application of the theory of settlement in determining the personal law (statute) of a legal entity actually
impedes the implementation of the principle of freedom of establishment contained in the TFEU, as the relocation of control centers of
the legal entity to the state where the theory of settlement is applied. loss of legal personality of a legal entity. This position is based on
the case law of the Court of Justice.

In addition, the application of the theory of settlement and incorporation significantly complicates the process of regulating the
activities of legal entities and slows down the development of the single market in the EU.
The experience of European countries in drafting an international treaty containing norms on unified legal regulation of the status
of legal entities has not proved effective. The EU has chosen other mechanisms for resolving conflicting issues of legal status of legal
entities, namely: harmonization of national laws of EU member states on certain issues of legal status and activities of legal entities, as
well as the creation of new organizational and legal forms of legal entities. This partially overcomes certain issues of conflict-of-law
regulation of the status of legal entities, for example, the issue of cross-border movement of European companies, European cooperatives;
in accordance with EU Directive 2019/2121, the rules of the laws of the Member States on cross-border transformation, mergers
and divisions of limited liability companies should be harmonized.

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19. The same
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Published
2020-11-10
How to Cite
Ovechkina, O. (2020). Ways to resolve conflicting issues of the status of legal entities in EU law and in the legislation of some of its member states. Law Review of Kyiv University of Law, 1(3), 392-398. https://doi.org/10.36695/2219-5521.3.2020.73
Section
The legal system of Ukraine and international law, comparative legal studies