Daily Mail Case

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International Business Law

Daily mail case
Daily mail is a company created in 1896; it is a British newspaper for lower-middle class. It becomes the first British newspaper which sells a million copies a day. Nowadays, it provides content, information, analytics and events for both businesses and consumers. This British company decided in 1988 to transfer its seat to Netherlands. According to the freedom of movement in the European Union, they should be allowed to do it. The British court refused this transfer and then they suited in the European court of justice. It was obvious that it was on purpose of not paying tax. It is why the British government refused. And ask questions to the European court of justice. If according to the article 52 and 58 (EEC) they can prohibit this transferring (if the reason is avoiding tax). Summary of the Judgment

“1 . The Treaty regards the differences in national legislation concerning the connecting factor required of companies incorporated thereunder and the question whether - and if so how - the registered office or real head office of a company incorporated under national law may be transferred from one Member State to another as problems which are not resolved by the rules concerning the right of establishment but must be dealt with by future legislation or conventions, which have not yet been adopted or concluded . Therefore, in the present state of Community law, Articles 52 and 58 of the Treaty, properly construed, confer no right on a company incorporated under the legislation of a Member State and having its registered office there to transfer its central management and control to another Member State . 2 . The title and provisions of Council Directive 73/148 of 21 May 1973 on the abolition of restrictions on movement and residence within the Community for nationals of Member States with regard to establishment and the provision of services refer solely to the movement and residence of natural persons, and the...
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