Case C-300/02: Action brought on 26 August 2002 by the Hellenic Republic against the Commission of the European Communities
Date: 2002-10-12
Institutions: Court of Justice
Subjects: EAGGF Guarantee Section, EU financing, Greece, action for annulment (EU), expenditure

C 247/8

EN

Official Journal of the European Communities

12.10.2002

(2) order the Netherlands Government to pay the costs.

Action brought on 26 August 2002 by the Hellenic
Republic against the Commission of the European Com-
munities

Pleas in law and main arguments

(As to the conditions concerning the status as Community
nationals of the shareholders and directors of companies,
pursuant to Article 311(3) of the Wetboek van Koophandel)

(Case C-300/02)

(2002/C 247/13)

It follows from the wording of Article 48 EC that a company’s
connection with the Community may not be based on the
nationality of the persons owning or managing it, but rather
on the following circumstances:

An action against the Commission of the European Communi-
ties was brought before the Court of Justice of the European
Communities on 26 August 2002 by the Hellenic Republic,
represented by Ioannis Khalkias and Georgios Kanellopoulos.

(1)

incorporation of the company in accordance with the
laws of a Member State; and

The applicant claims that the Court should:

(2) maintenance by the company of its registered office,
central administration or principal place of business
within the Community.

A condition requiring possession of the status of a Community
national cannot constitute an appropriate means by which a
Member State may exercise control, as required by Article 91
of the UN Convention on the Law of the Sea, over sea-going
vessels which fly its flag. The Commission is unable to see
what advantage the authority of a Member State having
responsibility for the shipping register may derive from the
Greek, Finnish or French nationality of the actual managers of
a shipping company which would be denied to it if those
managers were Japanese or American nationals. The argument
that, in order for the State whose flag a vessel flies to be able
to exercise actual control over that vessel, the shareholders
must be Community nationals, is equally disputable.

(As to the condition concerning the status as Community
nationals of the persons responsible for the day-to-day man-
agement and of the directors of a shipping company, pursuant
to Article 311(1)(c) of the Wetboek van Koophandel and
Article 8:169 of the Burgerlijk Wetboek)

The Commission refers to its submissions concerning its first
plea in law. It maintains that it can find no justification for a
measure whereby a company may have a sea-going vessel
registered in the Netherlands where the day-to-day manage-
ment of the company is entrusted to a Community national,
regardless of the latter’s place of residence, but prohibiting
registration where such day-to-day management is entrusted
to a national of a third country who resides in the Netherlands.

— annul Decision C(2002) 2281 final of 26 June 2002 (1)
excluding from Community financing certain expenditure
incurred by the Member States under the Guarantee
Section of the EAGGF, in so far as it relates to financial
corrections to the detriment of the Hellenic Republic in
the arable crops sector;

— allow the present application and annul or,

in the
alternative, amend the contested Commission decision
with regard to its particular chapters concerning financial
corrections to the detriment of the Hellenic Republic.

Pleas in law and main arguments

— Incorrect legislative interpretation;

— incorrect interpretation and application of Article 5(2)(c)

of Regulation (EEC) No 729/70;

— incorrect assessment of the facts;

— defective statement of reasons;

— breach of the principle of proportionality.

(1) OJ No L 170, 29.6.2002, p. 77.