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Kamer van Koophandel en Fabrieken voor Amsterdam v. Inspire Art

Case C-167/01, 2003 E.C.R. I-10155 (2003)

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Kamer van Koophandel en Fabrieken voor Amsterdam v. Inspire Art

European Union Court of Justice
Case C-167/01, 2003 E.C.R. I-10155 (2003)

Facts

In the Netherlands, a company formed under the law of another country that had no connection to the country in which it was formed and that conducted most of its business in the Netherlands was legally considered a foreign company. Under Netherlands law, foreign companies were subject to special requirements regarding minimum share capital in order to protect creditors and were subject to director-liability rules that served as penalties for noncompliance with the minimum-share rules (the foreign-company law). Inspire Art (Inspire) carried out all of its business in the Netherlands but was formed under the company law of the United Kingdom (UK) and held itself out as a company governed by the law in England and Wales to avoid the application of the more severe laws governing companies in the Netherlands. Inspire argued that the foreign-company law violated the freedom of establishment guaranteed under the Treaty on the Functioning of the European Union (TFEU).

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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European Union Law

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