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1. Member States shall reject an application for an intra-corporate transferee permit in any of the following cases:

(a) where Article 5 is not complied with;

(b) where the documents presented were fraudulently acquired, or falsified, or tampered with;

(c) where the host entity was established for the main purpose of facilitating the entry of intra-corporate transferees;

(d) where the maximum duration of stay as defined in Article 12(1) has been reached.

2. Member States shall, if appropriate, reject an application where the employer or the host entity has been sanctioned in accordance with national law for undeclared work and/or illegal employment.

3. Member States may reject an application for an intra-corporate transferee permit in any of the following cases:

(a) where the employer or the host entity has failed to meet its legal obligations regarding social security, taxation, labour rights or working conditions;

(b) where the employer's or the host entity's business is being or has been wound up under national insolvency laws or no economic activity is taking place;

(c) where the intent or effect of the temporary presence of the intra-corporate transferee is to interfere with, or otherwise affect the outcome of, any labour management dispute or negotiation.

4. Member States may reject an application for an intra-corporate transferee permit on the ground set out in Article 12(2).

5. Without prejudice to paragraph 1, any decision to reject an application shall take account of the specific circumstances of the case and respect the principle of proportionality.