Volume 52 (2015)

Volume 52 (2015) / Issue 1

Karsten Engsig Sørensen, 'The fight against letterbox companies in the internal market' (2015) 52 Common Market Law Review, Issue 1, pp. 85–117

Abstract

After the seminal judgment in Centros, it seemed that the fight against  letterbox companies was lost. The judgment made it clear that it is  possible for a company without any substantial activities in the Member  State where it is incorporated to exercise the free movement rights when  doing business in other Member States. After this judgment, the  widespread use of letterbox companies was not countered by any  coordinated effort of the EU; instead the Member States individually  undertook to fight letterbox companies. However, it has become clear that  letterbox companies sometimes interfere with the proper functioning of  the internal market. As a result, the EU has recently adopted or proposed  legislation aimed at diminishing the threat they pose. The article analyses  these legislative measures, their background and impact.

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ISSN: 0165-0750
ID: COLA2015004