Estonia’s accession to the European Union on 1 May 2004 continue to produce changes in law. Provisions in the Treaty on European Union stipulate the principle of equal treatment for all residents of the European Union, including freedom of establishment for companies, and equal opportunities for enterprise. The Commercial Code, however, had required that at least half the members of a management board of a company established and registered in Estonia had to reside in Estonia. Such provisions restrict freedom of establishment and freedom of enterprise. On 16 December 2004, the Riigikogu adopted a law to amend the Commercial Code and other similar acts to address the problem. According to the amendments the place of residence in the future of at least half the members of a management board, must be in Estonia, some other member state of the European Union, in some other member state of the European Economic Area or in Switzerland. Analogous provisions were also added to the Foundations Act, the Non-profit Associations Act and the Commercial Associations Act. The legislative amendments entered into force on 7 January 2005.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
