Halmer Rechtsanwaltsgesellschaft (Free movement of capital - Determination of the applicable freedom of movement - Services in the internal market - Judgment) French Text [2024] EUECJ C-295/23 (19 December 2024)

Halmer Rechtsanwaltsgesellschaft (Free movement of capital - Determination of the applicable freedom of movement - Services in the internal market - Judgment) French Text [2024] EUECJ C-295/23 (19 December 2024)

The Court held that national rules prohibiting non-lawyer financial investors from holding shares in law firms, under penalty of removal from the bar, constitute restrictions on the freedom of establishment and the free movement of capital. While the protection of the independence of lawyers and recipients of legal services is a legitimate objective, such restrictions are only permissible if they are necessary and proportionate. The Court found that the German rules went beyond what was necessary, as the independence of lawyers could be sufficiently protected by company statutes and professional rules, and less restrictive means were available. Therefore, the restrictions were...

Citation
[2024] EUECJ C-295/23
Parties
Applicant: Halmer Rechtsanwaltsgesellschaft UG; Respondent: Rechtsanwaltskammer München
Jurisdiction
European Union
Judgment Date
19 December 2024
Procedural Posture
Preliminary Reference (renvoi Préjudiciel) / Final Judgment
Outcome
The Court declared that Articles 49 and 63 TFEU and Article 15 of Directive 2006/123/EC preclude national legislation prohibiting non-lawyer financial investors from holding shares in law firms under penalty of removal from the bar.
Legal Topics
Freedom of Establishment, Free Movement of Capital, Legal Profession Regulation, Directive 2006/123/ec, Proportionality of Restrictions
European Union Law Company Law Professional Regulation Freedom of Establishment Free Movement of Capital Legal Profession Regulation Directive 2006/123/ec Proportionality of Restrictions

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Parties

Halmer Rechtsanwaltsgesellschaft UG

Applicant

Rechtsanwaltskammer München

Respondent

Procedural Posture

Preliminary Reference (renvoi Préjudiciel) / Final Judgment

Legal Issues

  1. 1 Whether national rules prohibiting non-lawyer financial investors from holding shares in law firms, under penalty of removal from the bar, violate Articles 49 and 63 TFEU and Article 15 of Directive 2006/123/EC.
  2. 2 Whether such restrictions are justified and proportionate to protect the independence of lawyers and recipients of legal services.

Ratio Decidendi

The Court held that national rules prohibiting non-lawyer financial investors from holding shares in law firms, under penalty of removal from the bar, constitute restrictions on the freedom of establishment and the free movement of capital. While the protection of the independence of lawyers and recipients of legal services is a legitimate objective, such restrictions are only permissible if they are necessary and proportionate. The Court found that the German rules went beyond what was necessary, as the independence of lawyers could be sufficiently protected by company statutes and professional rules, and less restrictive means were available. Therefore, the restrictions were...

Court Disposition

The Court declared that Articles 49 and 63 TFEU and Article 15 of Directive 2006/123/EC preclude national legislation prohibiting non-lawyer financial investors from holding shares in law firms under penalty of removal from the bar.

Orders

  • National courts must disapply such restrictive national provisions.
  • The applicant's removal from the bar on the sole ground of non-lawyer shareholding is unlawful under EU law.