In the dispute over revising Germany’s VW Law, justice minister Brigitte Zypries is standing firm on the issue of retaining a 20% blocking minority, effectively giving the state of Lower Saxony a power of veto in major decision making.
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Yesterday the European Commission’s internal markets commissioner, Charlie McCreevy, sent a letter to the German government outlining concerns that the revised law retains a clause that requires 80% of shareholders to approve decisions, whilst most companies need only 75% approval.
The law is being revised to comply with a European Court of Justice ruling at the end of last year that the VW Law hindered the free movement of capital.
Zypries today replied to McCreevy, saying: “I do not recognise that the blocking minority, which is a departure from the general share law, blocks the free movement of capital,” reported Reuters.
