A holding by purely financial investors in a law firm may be prohibited (CJEU)
The EU Court of Justice ruled in Case C-295/23 (Halmer Rechtsanwaltsgesellschaft) that a holding by purely financial investors in a law firm may be prohibited. Such a prohibition is justified in order to ensure the independence of lawyers. A Member State may prohibit holdings by purely financial investors in the capital of a law firm. Such a restriction on the freedom of establishment and the free movement of capital is justified by the objective of ensuring that lawyers can exercise their profession independently and in compliance with their professional conduct obligations. The German law firm Halmer Rechtsanwaltsgesellschaft is challenging before the Higher Bavarian Lawyers’ Court (Germany) a decision of the Munich Bar Association of 9 November 2021 which revoked its registration with the bar association on account of the fact that an Austrian limited liability company acquired shares [1] in it for purely financial purposes. Under the German legislation applicable at the ...