Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Wednesday, March 15, 2006

Company Law Changes in the EU

The EU has approved several changes to the Second Company Law Directive. Among the changes are deletion of a proposed minority freeze-out provision allowing a shareholder who owns 90% or more of a company's stock to freeze out the minority holders, provided a fair price is paid. EU member states may still set their own freeze-out rule. Other changes include easier implementation of preemption rights for existing shareholders and providing financial assistance to a white knight. The EU's Council of Ministers is expected to sign the new proposals into law in the next few weeks.

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