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By maintaining in force the provisions of the Volkswagen Law concerning the capping of voting rights at 20 % and the fixing of the blocking minority at 20 %, and the right of the Federal State and the Land of Lower Saxony each to appoint two representatives to the supervisory board, Germany has failed to fulfil its obligations under Article 56(1) EC, which prohibits, in short, restrictions on movements of capital. In this contribution, the Court's ruling will be analysed and the issue of possible broader implications of the judgment with regard to general company law will be addressed.

european company and financial law review

Volkswagen: the State of Affairs of Golden Shares, General Company Law and European Free Movement of Capital – A discussion of Case C-112/05 Commission v Germany of 23.10.2007 –