ECJ DECLARES ILLEGAL GERMAN PUBLIC CONTROLS OVER VW SHAREHOLDINGS
October 1st, 2007
BY KEITH NUTHALL
GERMAN luxury carmaker Porsche is expected to move to consolidate its planned control of mass manufacturer Volkswagen after the European Court of Justice declared illegal a 20% cap on shareholder voting rights within the company. The court said this broke EU freedom of movement of capital rules, along with rules allowing a 20% blocking minority over company decisions and the right of the federal and Lower Saxony regional governments to appoint VW board members.
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GERMAN luxury carmaker Porsche is expected to move to consolidate its planned control of mass manufacturer Volkswagen after the European Court of Justice declared illegal a 20% cap on shareholder voting rights within the company. The court said this broke EU freedom of movement of capital rules, along with rules allowing a 20% blocking minority over company decisions and the right of the federal and Lower Saxony regional governments to appoint VW board members.
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