(CN) In a ruling Wednesday that makes it easier for EU businesses to relocate their registered offices to different member states, the European Court of Justice called out a law in Poland that mandates liquidation as part of such moves.
Liquidation is a useful way, the Luxembourg-based court found, at ensuring that a number of entities, whether creditors, minority shareholders or employees, face little blowback from a corporate move.
Polands scheme fails, however, according to the ruling, because of the governments failure to consider what actual risk of detriment these entities face, or whether there is a less restrictive way to protecting their interests.
As regards, in particular, the interests of creditors, as stated by t…
Read the full article at: https://www.courthousenews.com/eu-unravels-polands-corporate-liquidation-scheme/
