The 5th freedom: Corporate Mobility within the EU

A recent article on Lexology co-authored by Senior Associate Kyriaki Stinga and Associate Emilios Charalambous examines the transformative impact of Directive (EU) 2019/2121 on the European Single Market, marking a significant milestone in the evolution of EU company law.

Against the backdrop of celebrating 30 years since the inception of the Single Market and its four fundamental freedoms, the authors explore the Directive’s role as the ‘fifth freedom,’ enabling seamless cross-border conversions, mergers, and divisions within the EU. They dissect key provisions of the Directive, emphasising stakeholder protections and the promotion of economic growth. Focusing on the implications for Cyprus, the authors forecast increased cross-border business activities, enhanced competitiveness, and improved legal certainty for Cypriot companies. However, they also anticipate challenges in adapting to new regulatory frameworks.

Notably, the article highlights the Directive’s significance in bridging gaps within Cyprus’s corporate legal system, particularly in facilitating cross-border divisions. Ultimately, the authors anticipate a paradigm shift in Cyprus’s business landscape, poised to capitalise on the opportunities afforded by deeper integration into the European single market.

The full article can be found on Lexology here.

For more information, please contact Kyriaki Stinga or Emilios Charalambous.