Volkswagen Law Finally Abolished
This is exactly what the German sports carmaker, Porsche was waiting for. Porsche already owns 31 percent majority stake of Volkswagen and plans of purchasing additional stakes in case the Volkswagen Law is repealed.
In the case before the European Courts of Justice in Luxembourg, the European Commission has stressed that the Volkswagen Law is against the union’s rule of free movement of capital. The court will also order Germany to change its law. The German government has already accepted the decision that is according to Deutsche Welle.
The Volkswagen Law has been adopted by the German government way back in 1960 to protect the state of Lower Saxony which owns 20.1 percent of VW’s shares. Porsche has spent $7 billion to purchase nearly 31 percent of Volkswagen’s shares however it’s voting right remains capped at 20 percent just similar to that of the Lower Saxony’s voting privileges.
