Germany set to lose Volkswagen 'golden shares'[fr][de] 

In conclusions  issued on 13 February, Advocate-General Dámaso Ruiz-Jarabo Colomer questioned provisions that guarantee a lasting influence from the German federal government and of the Land of Lower Saxony over Volkswagen, independently of the shares they hold. 

Colomer said that the provisions raise "serious doubts" with anybody wishing to acquire more than a fifth of the company's capital "because he would have no voting rights" above a 20% ceiling. Colomer therefore argued that the VW law is in breach of Article 56 of the EC treaty  on the free movement of capital.

The advocate-general added that Germany had not "demonstrated sufficient public interest" in maintaining its own and Lower Saxony's golden shares in Volkswagen. He recommended to oblige Germany to withdraw the VW law.

Advocate-general recommendations are followed by the Court in 80% of cases.

The 'VW-Gesetz' limits any other individual shareholder's rights to 20%, even if he owns more than that in company shares. At the same time, it requires an 80% majority for general meeting resolutions. This means that, effectively,  Lower Saxony can block all resolutions and exercise full control over Volkswagen, even though it owns little more than a fifth of the company shares. 

In March 2003, the Commission started proceedings against the 1960 law, (EurActiv, 20/03/03). The German government has sold its former 20% equity but is still present on the Volkswagen board, while Lower Saxony holds 20.8% of the corporation's shares. 

Porsche, the German luxury sports-car manufacturer, is holding a 27.4% share in Volkswagen. It would like to exercise more influence over Volkswagen, but is currently only exercising 20% of voting rights. Porsche is owned by the Porsche-Piëch family, which is closely linked to Volkswagen history.