The strengthening of choice of law in the field of company law by the recent decision of the European Court of Justice in the Überseering case may lead in the near future to the mutual recognition of national business forms by the EU Member States. This will mean an increase in regulatory competition between company laws. But will this competition necessarily lead to an improvement in the quality of company laws, or could the opposite be the case? What would be the appropriate features of a regulatory framework that would guide a competitive race of company laws to the top and not to the bottom?
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For a review of the Centros-decision see: H. Halbhuber: National Doctrinal Structures and European Corporate Law, in: Common Market Law Review, Vol. 38, 2001, pp. 1385–1420; K. Heine, W. Kerber: European Corporate Laws, Regulatory Competition and Path Dependence, in: European Journal of Law and Economics, Vol. 13, 2002, pp. 47–71.
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For more details see: K. Heine, W. Kerber: European Corporate Laws, Regulatory Competition and Path Dependence, in: European Journal of Law and Economics, Vol. 13, 2002, pp. 47–71.
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An illustrative example for the case of Delaware is given by W.T. Allen: The Pride and the Hope of Delaware Corporate Law, in: Delaware Journal of Corporate Law, Vol. 25, 2000, pp. 70–78.
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Heine, K. Regulatory competition between company laws in the European Union: The Überseering case. Intereconomics 38, 102–108 (2003). https://doi.org/10.1007/BF03031777
- Business Form
- Regulatory Competition
- Legal Capital
- Incorporation Theory
- Legal Product