Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • fx
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home»Post

    Portugal’s golden shares in EDP are unlawful

    npsBy nps10 December 2010Updated:9 July 2024 Post No Comments2 Mins Read
    — Filed under: EU Law Portugal
    Share
    Facebook Twitter LinkedIn Pinterest Email

    By Leo Gasteen

    The European Court of Justice (ECJ) ruled that by retaining Energia de Portugal special rights attributed to it by means of Golden Shares, Portugal has failed to fulfil its obligation to the fundamental principle of the free movement of Capital.

    The ruling comes after an action was filed by the Commission challeging Lisbon’s special rights, which it considered to be contrary to the pinciples of free movement of Capital.

    Energias de Portugal (EDP) was converted into a public limited company in 1991, further to the restructuring of the Portuguese electricity sector. Between 1997 and 2006 EDP was privatised in six successive phases. Currently, the Portuguese State holds 25.73% of the share capital, and as such retain Golden shares

    The Decree-laws approving EDP’s privatisation conferred on the Portuguese State, in addition to that right of veto, the right to object to the election of directors, and to appoint, in that event, a director to replace the person elected with the fewest votes or last on the list. Moreover, whereas EDP’s articles of association provide that the votes of ordinary shareholders holding more than 5% of the share capital will not be taken into account, the State or equivalent bodies are not subject to that ceiling

    The ECJ, Europe’s highest Court, declared that the ‘illegal arrangement’ gave more rights to Lisbon that the average shareholder, irrespective of the amount of share capital it held. It also held that Lisbon’s exercising of the special rights attributed by the Golden Shares constitute a ‘restriction on that fundamental freedom’.

    As such it ruled the arrangement to be illegal, and contary to the principles of the free movement of Capital within the EU.

    The European Court of Justice –  Justice and Application – Commission Vs. Portugal Full Text

    Add A Comment

    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    EU Agenda: Week Ahead – 11-16 November 2024

    How cities are adapting to host major gatherings

    The truth about walk-in baths and why it’s a game-changer for the modern bathroom

    Why 918kiss APK Is the Ultimate Casino Experience for Mobile Users

    The future of family offices: trends and predictions for the next decade in Europe

    European economic recovery is good news for Bitcoin’s price

    LATEST EU NEWS

    EU approves EUR 300m for common defence procurement projects

    14 November 2024

    EU proposes e-declaration for the posting of workers

    14 November 2024

    EU calls on Apple to end geo-blocking on media services

    14 November 2024

    EUR/USD touches one year low as Trump takes control of Congress – Euro currency news daily

    14 November 2024

    EU artificial intelligence factories set for 2025

    13 November 2024
    BRIEFING

    Agenda

    This week, COP29 begins in Azerbaijan; finance ministers discuss the EU's annual budget for 2025; and MEPs hold a plenary session on EU-US relations, EU summits, deforestation and COP 29...

    EUbusiness Week

    This week competitiveness and environment ministers will hold informal meetings…

    Eurozone Economic Calendar

    Key economic calendar events for the week 11 to 16 November 2024

    The Week's Top Stories

    This week competitiveness and environment ministers will hold informal meetings…

    Advertisement

    Subscribe to EUbusiness Week

    Get the latest EU news

    Latest Posts

    EU approves EUR 300m for common defence procurement projects

    14 November 2024

    EU proposes e-declaration for the posting of workers

    14 November 2024

    EU calls on Apple to end geo-blocking on media services

    14 November 2024

    EUR/USD touches one year low as Trump takes control of Congress – Euro currency news daily

    14 November 2024

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Tems
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025
    Design and developed by : Dotsquares

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login below or Register Now.

    Lost password?

    Register Now!

    Already registered? Login.

    A password will be e-mailed to you.

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok