THE MEMBER STATES ' RIGHT TO ESTABLISH A SYSTEM OF COMPULSORY ACQUISITION BY PUBLIC BODIES , SUCH A SYSTEM REMAINS SUBJECT TO THE FUNDAMENTAL RULE OF NON-DISCRIMINATION WHICH UNDERLIES THE CHAPTER OF THE TREATY RELATING TO THE RIGHT OF ESTABLISHMENT .
8 AS THE COMMISSION RIGHTLY POINTS OUT , ARTICLE 58 OF THE TREATY , TO WHICH THE NATIONAL COURT ' S QUESTION REFERS , DOES NOT GOVERN THE SOLUTION OF THE MATTER IN LITIGATION IN THE MAIN PROCEEDINGS . THE EFFECT OF THAT ARTICLE IS TO ASSIMILATE , FOR THE PURPOSES OF GIVING EFFECT TO THE CHAPTER RELATING TO THE RIGHT OF ESTABLISHMENT , COMPANIES OR FIRMS FORMED IN ACCORDANCE WITH THE LAW OF A MEMBER STATE AND HAVING THEIR REGISTERED OFFICE , CENTRAL ADMINISTRATION OR PRINCIPAL PLACE OF BUSINESS WITHIN THE COMMUNITY , TO NATURAL PERSONS WHO ARE NATIONALS OF ONE OF THE MEMBER STATES . IN THIS CASE , SINCE FEARON & COMPANY LIMITED IS AN IRISH COMPANY FOR THE PURPOSES OF ARTICLE 58 OF THE EEC TREATY , IT CANNOT CLAIM IN IRELAND THE BENEFIT OF THE RIGHT OF ESTABLISHMENT GRANTED TO COMPANIES FORMED UNDER THE LAWS OF THE OTHER MEMBER STATES .
9 THE QUESTION RAISED BY THE SUPREME COURT OF IRELAND SEEKS TO ASCERTAIN , HOWEVER , WHETHER , HAVING REGARD TO THE RULES LAID DOWN IN THE TREATY , NATIONALS OF OTHER MEMBER STATES WHO HAVE EXECISED THEIR RIGHT OF ESTABLISHMENT IN IRELAND UNDER ARTICLE 52 OF THE TREATY BY PARTICIPATING IN THE FORMATION OF A COMPANY WITHIN THE MEANING OF ARTICLE 58 OF THE TREATY CAN BE REQUIRED TO MEET A RESIDENCE REQUIREMENT .
10 THAT QUESTION MUST BE ANSWERED IN THE AFFIRMATIVE IF THE OBLIGATION TO RESIDE ON OR NEAR LAND IS IMPOSED BY A MEMBER STATE , WITHIN THE FRAMEWORK OF LEGISLATION CONCERNING THE OWNERSHIP OF RURAL LAND WHICH IS INTENDED TO ACHIEVE THE OBJECTIVES SET OUT ABOVE , BOTH ON ITS OWN NATIONALS AND ON THOSE OF THE OTHER MEMBER STATES AND IS APPLIED TO THEM EQUALLY . A RESIDENCE REQUIREMENT SO DELIMITED DOES NOT IN FACT AMOUNT TO DISCRIMINATION WHICH MIGHT BE FOUND TO OFFEND AGAINST ARTICLE 52 OF THE TREATY .
11 THE REPLY TO THE QUESTION PUT TO THE COURT BY THE SUPREME COURT OF IRELAND MUST THEREFORE BE THAT ARTICLE 52 OF THE TREATY DOES NOT PROHIBIT A MEMBER STATE FROM MAKING EXEMPTION FROM COMPULSORY ACQUISITION MEASURES ADOPTED UNDER LEGISLATION GOVERNING THE OWNERSHIP OF RURAL LAND SUBJECT TO A REQUIREMENT THAT NATIONALS OF OTHER MEMBER STATES WHO HAVE TAKEN PART IN THE FORMATION OF A LAND-OWNING COMPANY RESIDE ON OR NEAR THE LAND , IF THAT RESIDENCE REQUIREMENT ALSO APPLIES TO NATIONALS OF THAT MEMBER STATE AND IF THE POWERS OF COMPULSORY ACQUISITION ARE NOT EXERCISED IN A DISCRIMINATORY MANNER .
Decision on costs
COSTS
12 THE COSTS INCURRED BY IRELAND AND THE COMMISSION , WHICH HAVE SUBMITTED OBSERVATIONS TO THE COURT , ARE NOT RECOVERABLE . AS THESE PROCEEDINGS ARE , IN SO FAR