Judgment — ECLI:EU:C:2003:273
Date: 2003-05-13
Based on: Treaty establishing the European Economic Community (1957)
Subject matter: Right of establishment;Free movement of capital
Concepts: Free movement of capital and freedom of payments
Procedure: Action for failure to fulfil obligations - successful
Origin: United Kingdom

Summary of the Judgment 
Free movement of capital — Restrictions — National rules limiting the acquisition of 
shareholdings in a company and laying down a system of prior consent in relation to 
disposal of the company's assets, to control of its subsidiaries and to its winding-up — 
Not permissible 
(Art. 56 EC) 
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SUMMARY — CASE C-98/01 
The fact that restrictions on the acquisition 
of shares apply without distinction to both 
residents and non-residents does not mean 
that they fall outside the scope of Article 56 
EC, since they affect the position of a 
person acquiring a shareholding as such 
and are thus liable to deter investors from 
other Member States from making such 
investments and, consequently, to affect 
access to the market. 
A Member State which maintains in force 
rules limiting the possibility of acquiring 
voting shares in a company as well as a 
procedure requiring consent to the disposal 
of the company's assets, to control of its 
subsidiaries and to winding-up, fails to 
fulfil its obligations under Article 56 EC. 
(see paras 46, 48, 51, operative part) 
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