The European Union is contesting amendments to the Volkswagen Law proposed by the German government in response to a European Court of Justice ruling last year.
Go deeper with GlobalData
According to Thomson Financial, the European Commission has confirmed that internal markets commissioner, Charlie McCreevy, has sent a letter to the German government outlining concerns.
The commissioner is reportedly concerned that the government want to retain a clause that requires 80% of shareholders to approve decisions, whilst most companies only need 75% approval.
The government’s move is designed to allow the state of Lower Saxony, which owns a 20.3% stake in Volkswagen, to retain a power of veto over major decisions. This is considered particularly important at a time when Porsche is acquiring a majority shareholding in the company, and employees are concerned that all decision making will be transferred to Stuttgart.
A McGreevy spokesman told Reuters that: “The Commissioner reserves the right to open proceedings against Germany but is relying on the German authorities to do the right thing.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
