Commission takes the Netherlands to Court of Justice on special powers in KPN and TNT
The European Commission has decided to take the Netherlands to the European Court of Justice in two separate cases with respect to certain provisions of the Articles of Association of KPN and TPG that grant the Dutch State special rights as holder of the special share (“golden share”) in the respective capital of the companies. Given the major influence these special rights confer on KPN’s and TNT’s financial decision-making as well as the management of the two companies, this “golden share” could deter investors from other Member States from investing in the capital of the two firms. The Commission therefore takes the view that these special rights are contrary to the free movement of capital laid down in Article 56 of the EC Treaty and the right of establishment in Article 43.
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