European Commission to battle Volkswagen in Court

Automobile Staff
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Volkswagen is preparing to go to court this week after European Union Officials attack long standing controversial rules within the company. The rules in question dictate that more than an 80 percent majority of stockholders is needed to pass major decisions. This means that any party with at least 20 percent of Volkswagen's stock can block major changes to the company including possible takeovers of the company.

The EU specifically disfavors the state of Lower Saxony, Volkswagen's second largest stakeholder at 20 percent of their stock, and wants the regulations on the matter changed to 75 percent, which is consistent with standard German security laws. Volkswagen's largest stockholder, Porsche (who owns 31 percent of Volkswagen), also opposes the plan. The EU maintains that the current situation deters bidders and breaks laws guaranteeing all EU companies the right to invest in any part of the 27 nation union.

Source: Detroit News

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