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.