Keywords
Summary

Keywords

Freedom of movement for persons – Freedom of establishment – Free movement of capital – Restrictions – Company law

(Arts 49 TFEU and 63 TFEU; Council Directive 68/151)

Summary

First Directive 68/151 on co-ordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community, must be interpreted as not precluding national legislation according to which the fines prescribed for infringement of the legislation and rules of good conduct governing the operation of television stations are imposed jointly and severally, not only on the company which holds the licence to found and operate the television station but also on all shareholders with a holding of over 2.5%.

On the other hand, Articles 49 TFEU and 63 TFEU must be interpreted as precluding such national legislation.

Such legislation has a deterrent effect on investors, affects their access to the equity market and thus restricts both freedom of establishment and the free movement of capital. Even if such a restriction pursues the legitimate objective of securing compliance by television companies with legislation and journalists’ rules of professional conduct in order, inter alia, to prevent the honour or the private life of persons whose image appears on the screen or whose name is referred to from being adversely affected, it cannot be held that that restriction is suitable for securing the attainment of the objective which it pursues or, above all, that it does not go beyond what is necessary in order to attain it.

(see paras 46, 56, 60, 63, 65, 70, operative part 1-2)