THE FREEDOM OF ESTABLISHMENT AND MOBILITY OF CORPORATIONS IN CONSIDERATION OF EUROPEAN UNION LAW AND EUROPEAN COURT OF JUSTICE’S AWARDS

The freedom of mobility granted to natural persons in the European Union Association Legislation is also applicable to the member state legal persons as per the provisions in the Founding Treaty. As a result, a commercial established in an EU member state can conduct commercial activities without any limitations in other EU member states. Freedom of mobility and establishment in legal persons is realized through the relocation of the corporation headquarters from one country to the other or through establishment of branches or affiliated corporations in other countries. Member states are obliged to refrain from legislating national legal provisions which restrict the commercial operations of foreign corporations in their country pursuant to the principle of freedom of movement and establishment. The main purpose of these two rights granted to the legal persons is to increase capital flow and promote common market economy through the ablosihment of foreign – domestic corporation distinction. However, the differences between member states national legislation and the legislation regarding the conflict of laws lead to crucial problems in practice. This study focuses on the examination of these problems in the light of Association Legislation and the decisions of the European Union Court of Justice.