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Does the European Company Prevent the ‘Delaware Effect’?

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This article analyses the history of EU company law and locates a stable ‘non-competitive equilibrium’. This equilibrium follows from Member States that founded the EU unwilling to give up their lawmaking authority regarding company law issues. From the outset, Member States were determined to prevent the ‘Delaware effect’. Since then, stability has ruled. The agenda-setting in EU company law has changed little during the existence of the EU. Operative incentives, market structure and regulatory results have been more constant than dynamic, even as the recent enactment of the European Company has triggered discussion about competitive lawmaking in Europe.
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Document Type: Research Article

Publication date: 2005-11-01

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