Case C-350/96,  ECR I-2521
FACTS : Austrian Trade Code requires legal entities to have manager resident in Austria.
-P applied to be registered, application was rejected b/c manager was a resident of Berlin at the time, although he was seeking to live in Austria.
ISSUE: Does residence requirement for company managers constitute indirect discrimination under TFEU 45?
HOLDING: Requirement that nationals of other states must reside in state in order to be appointed a manager constitutes discrimination based on nationality under TFEU 45.
APPLICATION: Here the law applies without regard to the nationality of the person to be appointed as manager. Court says that national rules under with a distinction is drawn on basis of residence are liable to operate to the detriment of nationals of other member states.-Court says the residence requirement would be okay if based on objective criteria independent of nationality of employees, and proportionate to a legitimate aim pursued by national law.
D's ARGUMENT: Residence requirement justified objectively by the needs to ensure that manager could act effectively. (court disagrees).