Topic 5 - International company law pt.1

Question 1

What are the three business forms?

Answer 1

1) Partnerships
2) Companies
3) Others (cooperatives, foundations)

Question 2

What does limited liability entail?

Answer 2

Shareholders risk is limited to what they have put into the company

Question 3

What does the primary company law involve?

Answer 3

Freedom of establishment (article 48) & Definition of company (article 54)

Question 4

What does article 49.1 TFEU say?

Answer 4

Restrictions on the freedom of establishment of nationals in the territory of another member state shall be prohibited

Question 5

What does article 49.2 TFEU say?

Answer 5

Freedom of establishment shall include the right to take up and peruse actives as self-employed persons and to set up and manage undertakings

Question 6

What does article 54.2 say?

Answer 6

Companies are constituted under civil/commercial law & to save those which are non-profit making

Question 7

What does primary FoE include?

Answer 7

Freedom to start up a company in another member state

Question 8

What does secondary FoE include?

Answer 8

Setting up agencies, branches and subsidiaries

Question 9

What are the stages of FoE

Answer 9

1) Primary or secondary
2) Is it an inbound/entry or outbound/exit
3) Is it the real of statutory seat?