Inspire Art

On 30 September 2003, the European Court of Justice handed down a judgment in the Inspire Art case.

The Court found certain provisions of the Dutch Law on Formally Foreign Companies of 17 December 1997 (Wet op de Formeel Buitenlandse Vennootschappen) to be contrary to Article 2 of the Eleventh Company Law Directive and others to form a restriction to the exercise of the right of secondary establishment incapable of justification under Article 46 of the EC Treaty or the case law on overriding reasons relating to the public interest, also referred to as the 'rule of reason' case law.

Ten days later, a leading Dutch legal periodical stated that this judgment would lead to the Netherlands being inundated by private limited liability companies incorporated in England under English company law.

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