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Freedom Of Reincorporation And The Scope Of Corporate Law In The U.S. And The E.U., Federico Mucciarelli

Federico M. Mucciarelli

In the U.S. corporations can be incorporated in any of the 50 states and can “reincorporate” afterwards in any other state. In the E.U. such freedoms are a recent achievement: In the last decade, first the European Court of Justice has liberalized initial incorporations and only in 2005 the cross-border directive has open the doors to freedom of midstream reincorporation from one member state to another. Midstream reincorporations, however, in the E.U. have a much different impact than on the other side of the Atlantic. In the U.S., indeed, the competence of the state where a company is incorporated is …