This chapter discusses the development of free movement of capital in the EU. It covers the scope of the provision on capital; national measures that are prohibited under Article 63 TFEU; express derogations and public interest requirements. The chapter begins by examining why free movement of capital is considered an important part of any trading area before briefly examining its evolution in the EU. The chapter then analyses the detail of the Treaty provisions on capital.
Chapter
13. Free Movement of Capital
Chapter
18. Free Movement of Payments and Capital
This chapter examines the rules concerning free movement of payment and capital within the European Union provided in Articles 63, 64, 65 and 66 of the Treaty on the Functioning of the European Union (TFEU). It explains the scope of and derogations to the free movement of capital. The chapter also considers restrictions on free movement of capital between Member States and third countries. It highlights the willingness of the Court of Justice (CJ) to borrow principles (ie, rule of reason) from the other freedoms. This chapter also considers briefly the provisions relating to monetary and economic union and the developments in the light of the financial crisis.
Chapter
9. Flexibility of benefit
According to the so-called ‘rule in Saunders v. Vautier’, the beneficiaries of an expressly created private trust may terminate the trust if they are in unanimous agreement and are all competent adults, and are, between them, absolutely entitled to the trust property. This chapter examines the issue of ‘flexibility of benefit’, the extent to which beneficiaries may be able to take benefits under a trust despite limitations on their beneficial ownership, as well as the extent to which limitations on their beneficial ownership may be varied or entirely removed. It shows that under the Trustee Act 1925, trustees have a discretionary power—known as ‘the power of maintenance’—to apply income for the benefit of infant beneficiaries and a similar discretionary power, termed ‘the power of advancement’, to apply capital for the benefit of a beneficiary (infant or adult) out of his/her anticipated entitlement to the trust fund.
Chapter
16. Duties Relating to Corporation Finance and Capital
This chapter discusses the details of the various obligations on companies that wish to issue and allot shares, provide debentures and charges over the company’s assets, and provide guidance on the maintenance of the company’s finances. It continues from the discussion of the administration of the company to consider the broad issue of corporate governance and identifies how a company may raise capital, while also considering the obligations placed on the directors to protect and maintain the capital of the company for its members. To appreciate the effects of the Companies Act (CA) 2006 on companies, it is important to understand the rules regarding the issuing of shares and granting of debentures to protect the company and the creditors from abuse, and how dividends are to be agreed upon and provided to shareholders.
Chapter
5. Raising capital: equity and its consequences
Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on raising equity from the general public and its consequences for the operation of the company. It begins by outlining the basics of raising equity before turning to the consequences of operating in a public market, with emphasis on areas such as takeovers and insider dealing. It then considers the distinction between public and private companies in terms of capital raising, how such companies are regulated, and how public companies differ from listed companies. It also discusses various methods of raising money from the public, the role of the Financial Conduct Authority and the London Stock Exchange in ensuring the proper functioning of the listed market in the UK, and the regulation of listed companies as well as takeovers and other public offers.
Book
Catherine Barnard
The Substantive Law of the EU provides a critical and thorough analysis of the key principles of the substantive law of the EU, focusing on the four freedoms (goods, persons, services, and capital). An introductory chapter provides valuable context on the nature of the internal market, its evolution, and the theories behind its key principles. Each of the freedoms is then considered in turn. The book concludes with a discussion of harmonization, the regulation of the internal market, and its future.
