A Hanover court has ruled against Porsche in a complaint designed to remove the state of Lower Saxony’s 20% blocking minority in Volkswagen AG.
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Porsche, is the largest shareholder in Volkswagen AG, and is aiming to take a majority shareholding next year. But according to a unique German law, the second largest shareholder, the state of Lower Saxony, has a blocking minority on all major decisions, with just a 20% shareholding. Under standard law a 25% shareholding would be required.
Porsche has been campaigning to have the blocking minority removed. The so-called Volkswagen Law has been successfully challenged by the European Court once, causing it to be redrafted by the German government. But the blocking minority of 20% remains in the redrafted law and the European Commission is again looking at this.
But at the same time Porsche is using other means to get the rules changed. At the company’s annual general meeting in April, Porsche filed to have Volkswagen’s statutes changed to remove the blocking minority.
Porsche argued in the recent court case that the AGM should have adopted its motion.
According to Reuters the case is now likely to be taken to a higher court.
