COMPARATIVE COMPANY LAW...COMPARATIVE COMPANY LAW When comparing the laws of different jurisdictions, one often sees only the forest or the trees. This is particularly problematic

Cambridge University Press978-1-107-18635-4 — Comparative Company Law2nd EditionFrontmatterMore Information

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COMPARATIVE COMPANY LAW

When comparing the laws of different jurisdictions, one often sees onlythe forest or the trees. This is particularly problematic in comparativecompany law, where students hope both to understand the overall frame-work of the law and to grasp its practical application. This text’s structure,now in its second edition, solves that dilemma.Chapters open with discursive analyses of the law in Germany, the

United Kingdom and the United States (Delaware, the ABA ModelBusiness Corporation Act and federal securities laws) and set out thehigh-level governing framework, particularly for the EU and its memberstates. This analysis is succinct and pointed, with numerous references toboth the law and leading scholarship. The whole text is arranged tohighlight comparative aspects. Diagrams are used where helpful. Chaptersclose with edited judicial decisions from at least two of the jurisdictionsdiscussed, which allows fresh exploration of comparison in more detail,and pointed questions to guide class discussion.

studied law at Goethe University Frankfurt and at theUniversity of California at Berkeley. His doctoral thesis deals with prob-lems of managers’ liability, and his postdoctoral thesis (Habilitation)focuses on legal aspects of intra-group financing. In 1996 he took up theChair of Civil Law, Commerce Law and Corporate Law at the University ofMannheim. Since October 2002 he has been Executive Director of theInstitute for Law and Finance at Goethe University, Frankfurt. He haspublished on corporate law, capital markets law, the law of productsliability and general Civil Law as well as on civil procedure.

. has been a professor in the Faculty of Law at TheChinese University of Hong Kong since 2008. From 2003 until 2008,Donald taught at the Institute for Law and Finance at Goethe UniversityFrankfurt. For the decade preceding that he worked as a commercial,corporate and securities lawyer in Washington, DC, Milan, Rome andFrankfurt. Donald’s publications focus on market structure, securitiesclearing and settlement, corporate law and comparative law. He holds aPhD in Law and an LLM from Goethe University Frankfurt, a JurisDoctor from Georgetown University and a PhD in Comparative Litera-ture from SUNY Buffalo.

www.cambridge.org/9781107186354www.cambridge.org



COMPARATIVE

COMPANY LAW

Text and Cases on the Laws GoverningCorporations in Germany, the UK and the USA

ANDREAS CAHN

DAVID C. DONALD




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DOI: 10.1017/9781316888971

© Andreas Cahn and David C. Donald 2010, 2018

This publication is in copyright. Subject to statutory exceptionand to the provisions of relevant collective licensing agreements,no reproduction of any part may take place without the written

permission of Cambridge University Press.

First published 2010Reprinted 2011

Second Edition 2018

Printed and bound in Great Britain by Clays Ltd, Elcograf S.p.A.

A catalogue record for this publication is available from the British Library.

Library of Congress Cataloging-in-Publication DataNames: Cahn, Andreas, author. | Donald, David C., 1958- author.

Title: Comparative company law : text and cases on the laws governing corporationsin Germany, the UK and the USA / Andreas Cahn and David C. Donald.

Description: Second edition. | Cambridge, United Kingdom : Cambridge University Press, 2018. |Includes bibliographical references and index.

Identifiers: LCCN 2018014945 | ISBN 9781107186354 (hardback) |ISBN 9781316637159 (paperback)

Subjects: LCSH: Corporation law–Great Britain. | Corporation law–United States. | Corporationlaw–Germany. | BISAC: LAW / Corporate.

Classification: LCC K1315 .C34 2018 | DDC 346/.065–dc23LC record available at https://lccn.loc.gov/2018014945

ISBN 978-1-107-18635-4 HardbackISBN 978-1-316-63715-9 Paperback

Cambridge University Press has no responsibility for the persistence or accuracyof URLs for external or third-party internet websites referred to in this publication

and does not guarantee that any content on such websites is, or will remain,accurate or appropriate.




CONTENTS

List of figures page viiList of tables viiiPreface to the Second Edition ixPreface and acknowledgments xiGlossary xiiiList of abbreviations xviTable of cases xxTable of legislation xxvii

The essential qualities of the corporation 1

1 Approaching comparative company law 3

2 Corporations in a global market: the law applicable tocorporations 25

3 Corporations in a global market: harmonization, convergenceand transplantation 94

The corporation and its capital 103

4 The partnership as an alternative form of businessorganisation 105

5 Incorporating the company 150

6 Constituting the company’s share capital 188

7 Increasing the company’s capital 219

8 Distribution of dividends and maintenance of sharecapital 254

9 Repurchases of shares 286

10 The nature of shares and classes of shares 306

Governing the corporation 345

v




The management 347

11 An introduction to the board and its governance 349

12 Directors’ power to represent the company 365

13 Directors’ duties of loyalty, good faith and care 393

14 Judicial review of management decisions (the businessjudgment rule) 444

15 Executive compensation 501

16 Directors’ duties in listed companies 533

17 Governing the family enterprise 557

The members 573

18 Shareholder voting rights 575

19 Shareholder information rights 640

20 Shareholder meetings 680

21 Shareholder duties 712

22 Judicial enforcement of shareholder rights 743

Corporate combinations, groups andtakeovers 763

Mergers and acquisitions 765

23 Techniques for business combinations 767

24 Governance rules for business combinations 801

Companies in groups 825

25 Corporate groups: independent entities in economicinterdependence 827

The market for corporate control 883

26 The regulation of takeover bids and prices 885

27 Management interference with takeovers bids 927

28 Special problems with leveraged buyouts 980

References 1014Index 1035

vi




FIGURES

1.1 The five characteristics of a corporation and related topical laws page 14

2.1 The jurisdictional breakdown of rules governing German corporations 37

2.2 The jurisdictional breakdown of rules governing US corporations 52

11.1 US law from the flexible to the rigid 357

12.1 Capacity, authority and reliance 367

15.1 Ratio of CEO pay to average employee pay, United States, Germany and United

Kingdom. Sources: US data: AFL–CIO, 2008 Trends in CEO Pay, www.aflcio.org/

corporatewatch/paywatch/. German data: Schwalbach (2009: 125–126). 507

17.1 The systems of company and family intersect 561

18.1 Dispersed holdings hinder collective action 584

23.1 Simple purchase of assets 770

23.2 Simple purchase of stock 772

23.3 Simple statutory merger 774

23.4 Triangular mergers 775

27.1 The effects of takeovers on governance 931

vii




TABLES

1.1 Functional components of company law page 23

4.1 Partnership forms and characteristics, Germany 116

4.2 Partnership forms and characteristics, UK 123

4.3 Partnership forms and characteristics, US 131

7.1 Simplified financial statements of Company E and Company L 222

viii




PREFACE TO THE SECOND EDITION

Much has happened since the first edition of this book was published in2010. The various reforms following the global financial crisis came intoeffect in the United States and Europe, scholarship critical of the policiesembraced around the turn of the century became mainstream, the EuroZone was plunged into crisis, economic downturn and the austeritymeasures imposed were followed by popular reaction and the multilateralorder that had been growing since the close of World War II wasreversed by popular elections in the countries that had established it –the United States and United Kingdom.

These events have tangibly affected company law, particularly forcompanies listed on securities exchanges. They may also profoundlyaffect the law of the United Kingdom, but the exact shape of the changesare not yet visible as this book goes to press. This edition picks up andincorporates all legal and regulatory changes in the three jurisdictionsstudied and also takes account of the shifting center of corporate lawscholarship.

In particular, we bring in the changes made to company law andsecurities regulation in each jurisdiction and the European Union,including the recent consolidation of company law directives. We alsoaddress alternative forms to the capital-market-centered view of thecorporation and enforcement through US-style litigation that prevailedbefore the global financial crisis – examining both public enforcement ofcorporate law and the nature of the family firm. In addition, we have alsoupdated the cases included in this book, particularly with some interest-ing and very meaningful decisions of the German High Federal Court, onsuch issues as directors’ duties and shareholder rights.

This second edition would not have been possible without the valuableresearch support of Gina Leisten, Georg Lorenz, and Paul Cheuk. Asalways the expert guidance and sharp eye of Cambridge University Presshas significantly increased the quality of our manuscript in a number of

ix




ways. We would particularly like to thank Kim Hughes for her kindpatience regarding our much-delayed delivery of the manuscript.

We hope that you find this new edition useful for your teaching orresearch, and would love to hear from you about what works for you andwhat could be improved.

May, 2018

Andreas Cahn, Frankfurt am MainDavid Donald, Hong Kong

x




PREFACE AND ACKNOWLEDGMENTS

The groundwork for this text began in 2002 as materials for a course in“National and International Company Law” at the Institute for Law andFinance (ILF) in Frankfurt. Students were asked to read cases, statutoryprovisions and supervisory authority rules from the three jurisdictions,and then the comparisons were drawn in the lectures and class discus-sions. It was very much three courses packed into a single set of credithours. We must thank those students of the first few years who volun-tarily agreed to triple reading for a single course. Summary “notes” werethen drafted to accompany the cases, following a classic US model forcase books. As the synthesis and comparative analyses of the US, UK andGerman law gradually developed and took shape, the notes wereextended into chapters, approaching their current form.

The text you see now aims: (i) to present the essentials of the companylaws of all three jurisdictions on the topics covered; (ii) to guide studentsthrough a comparative analysis by highlighting some of the techniques(such as understanding functions in context and the complementaritiesbetween individual sets of rules) and conclusions (company law as a setof default rules to address agency costs) advocated in the corporate andcomparative law scholarship; and (iii) to allow students to conduct theirown comparative study by giving them lengthy excerpts from cases in allthree jurisdictions, references to the key statutory provisions and regula-tory rules in each chapter, and questions for thought and discussion. Wehope the text enables the reader to see both the forest of overarchingcomparative relationships and the trees of the individual legal systems.

We are grateful to the Incorporated Council of Law Reporting forEngland and Wales and to Reed Elsevier (UK) Limited for their permis-sion to reproduce edited versions of the judicial opinions in this text forwhich either the Incorporated Council or LexisNexis Butterworths holdsthe copyright. Without their kind generosity, it would not have beenpossible to offer this text in its present form.

xi




Many people gave us their time and support to make this text possible.First of all, there were the classes of students at the ILF and later also atThe Chinese University of Hong Kong (CUHK), who studied and com-mented on earlier drafts of the manuscript, pointing out what was clearfor them and what tended toward the opaque. Geoff Miller, MichaelLower, Terence Grady, Frank Gevurtz, Paul Davies, Jim Cox, Xi Chao,Annie Carver, Theodor Baums and John Armour gave us great encour-agement and helpful comments on the text at various points in its ratherlong genesis. The citation-checking work of CUHK PhD candidates,Zhang Zhang, Zhang Yihong, Frank Meng and Tan Fugui, was extraor-dinarily diligent. ILF graduate Arzoo Ismail proved invaluable in prepar-ing the list of references, and ILF Dr jur. candidate Henny Müchler wasof great assistance in collating the judicial decisions and seeking approv-als to reprint them. Derek Savelle of Bowne Financial Printers providedhandsome prospectus-like volumes of early drafts for use in our classes.The editorial team of Cambridge University Press, in particular KimHughes and Richard Woodham, have been kind, supportive and encour-aging from the outset.

Without the kind encouragement, insightful comments and diligentassistance of these people, this text might well have been dropped beforereaching press. Thank you.

xii




GLOSSARY

Germany United States United Kingdom

ad hoc Mitteilungen current disclosure disclosure ofsignificant events

Aktiengesellschaft stock corporation company limited byshares

Aktiengesetz Stock Corporation Act Companies Actangemessen appropriate, suitable appropriate, properAufsichtsrat (supervisory board) (supervisory board)Betriebsverfassungsgesetz Works Constitution Act Works Constitution

ActBezugsrecht stock option share optionBezugsrechte preemptive rights preemption rightsBörse securities exchange stock exchangeBörseneinführung listing quotation, listingBörsengesetz (Exchange Act) (Exchange Act)Bundesgesetzblatt (BGBl,

Federal Law Reporter)(Federal Law Reporter)

D&O insurance directors & officers (orD&O) insurance

directors & officers(or D&O)insurance

due diligence due diligence due diligenceFreiverkehr over-the-counter marketGattung class classGesellschaft mit beschränkter

Haftungclosely held corporation private limited

companyGesetz betreffend die

Gesellschaften mitbeschränkter Haftung

(Close Corporation Act) (Private LimitedCompany Act)

Gesetz über das Verfahren inFamiliensachen und in den

Act on the Procedure inFamily Matters and in

Act on theProcedure in

xiii




(cont.)


Angelegenheiten derfreiwilligen Gerichtsbarkeit(FamFG)

Matters of Non-contentious Jurisdiction

Family Mattersand in Matters ofNon-contentiousJurisdiction

gleichgestellt pari passupari passu Haftungliability liabilityHandelsgesetzbuch (Commercial Code) (Commercial Code)Handelsregister commercial register companies registryInsiderhandel insider trading insider dealingKodex code codeMitbestimmung co-determination co-determinationMitbestimmungsgesetz (Co-Determination Act) (Co-

DeterminationAct)

öffentliches Angebot public offer, offering public offer,offering

Prokurist attorney-in-fact (attorney-in-fact)Sorgfaltspflicht duty of care duty of careStammaktien common stock ordinary sharesTreuepflicht duty of loyalty duty of loyaltyTreuhänder trustee trusteetreuhänderische Pflicht fiduciary duty fiduciary dutyUmwandlung reorganization (transformation)Umwandlungsgesetz (Reorganization Act) (Transformation

Act)Unternehmensinteresse,

Wohl der Gesellschaftinterest of the corporation interest of the

companyunverzüglich promptly as soon as

possibleVergütung compensation remunerationVollmacht proxy proxyVorstand (management board) (management

board)Vorzugsaktien preferred stock preference sharesWertpapierbörse securities exchange stock exchangeWertpapiererwerbs- und

Übernahmegesetz(Tender Offer Act) (Takeover Act)

xiv




(cont.)


Wertpapierhandelsgesetz (Securities Trading Act) (SecuritiesTrading Act)

Wertpapierprospekt securities prospectus listing (non-listing)prospectus

Wertpapierprospektgesetz (Securities Prospectus Act) (SecuritiesProspectusAct)

xv




ABBREVIATIONS

AG Aktiengesellschaft (stock corporation)

AktG Aktiengesetz (Stock Corporation Act)

ARUG Gesetz zur Umsetzung der Aktionärsrechterichtlinie (Act for the

Implementation of the Shareholder Rights Directive)

BaFin Bundesanstalt für Finanzdienstleistungsaufsicht (German Securities

Supervisory Authority)

BERR Department for Business, Enterprise and Regulatory Reform

BetrVG 1952 Betriebsverfassungsgesetz 1952 (Labor Management Relations Act

1952)

BGB Bürgerliches Gesetzbuch (Civil Code)

BGBl I/III Bundesgesetzblatt Teil I/III (Federal Law Reporter), Part I/III

BGHSt Entscheidungen des Bundesgerichtshofs in Strafsachen (German

Federal Law Reporter on Criminal Cases)

BGHZ Entscheidungen des Bundesgerichtshofs in Zivilsachen (German

Federal Law Reporter on Civil Cases)

BilMoG Gesetz zur Modernisierung des Bilanzrechts (Act for the

Modernization of Accounting Law)

BIS Department for Business, Innovation and Skills

BörsG Börsengesetz (Stock Exchange Act)

BörsO FWB Börsenordnung der Frankfurter Wertpapierbörse (Rules of the

Frankfurt Stock Exchange)

BT-Drucks. Bundestagsdrucksache (Parliamentary Publication)

BVerfG Bundesverfassungsgericht (Federal Constitutional Court)

BVerfGE Entscheidungen des Bundesverfassungsgerichts (Federal

Constitutional Court Reporter)

CA 1985 Companies Act 1985

CA 2006 Companies Act 2006

CEO Chief Executive Officer

CESR Committee of European Securities Regulators

CFO Chief Financial Officer

CFR Code of Federal Regulations

xvi




CRIM-MAD Directive 2014/57/EU of the European Parliament and of the

Council of 16 April 2014 on criminal sanctions for market abuse

(market abuse directive)

Del. Ch. Delaware Court of Chancery

Del. Supr. Supreme Court of Delaware

DGCL Delaware General Corporation Law

DrittelbG Gesetz über die Drittelbeteiligung der Arbeitnehmer im Aufsichtsrat

(Law providing for One-Third Representation of the Employees on

the Supervisory Board)

DTI Department of Trade and Industry

DTR Disclosure and Transparency Rules

EBA European Banking Authority

EC European Community

ECJ European Court of Justice

EEA European Economic Area

ESMA European Securities and Markets Authority

EU European Union

FCA Financial Conduct Authority (UK)

FS Festschrift (essays in honor of)

FSA Financial Services Authority

FSB Financial Stability Board

FSMA Financial Services and Markets Act 2000

GAAP Generally Accepted Accounting Principles

GbR Gesellschaft bürgerlichen Rechts (civil law partnership)

GewO Gewerbeordnung (Business Practice Act)

GG Grundgesetz (Federal Constitution)

GmbH Gesellschaft mit beschränkter Haftung

GmbHG Gesetz über Gesellschaften mit beschränkter Haftung (Limited

Liability Company Act/Close Corporation Act)

HGB Handelsgesetzbuch (Commercial Code)

InsO Insolvenzordnung (Insolvency Act)

IOSCO International Organization of Securities Commissions

KGaA Kommanditgesellschaft auf Aktien (partnership limited by shares)

KonTraG Gesetz zur Kontrolle und Transparenz im Unternehmensbereich

(Law for Monitoring and Transparency in Business Undertakings)

LBO leveraged buy-out

LG Landgericht (Regional Court)

LPA 1907 Limited Partnership Act 1907

LR Listing Rules

MAPC Model Articles for Public Companies (SI 2009 No. 3229)

MAR Market Abuse Regulation (Regulation (EU) No. 596/2014 of the

European Parliament and of the Council of 16 April 2014 on

xvii




market abuse (market abuse regulation) and repealing Directive

2003/6/EC of the European Parliament and of the Council and

Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/

EC)

MBO management buy-out

MgVG Gesetz über die Mitbestimmung der Arbeitnehmer bei einer

grenzüberschreitenden Verschmelzung (Act on Co-Determination of

Employees in a Cross-Border Merger)

MitbestG Mitbestimmungsgesetz (Co-Determination Act)

MMC Monopolies and Mergers Commission

mn. margin note

MoMiG Gesetz zur Modernisierung des Aktienrechts und zur Verhinderung

von Missbräuchen (Act for the Modernization of the Limited

Liability Company Law and the Prevention of Abuse)

MTF multilateral trading facility

Nasdaq National Association of Securities Dealers Automated Quotations

NYSE New York Stock Exchange

OFT Office of Fair Trading

OTF organized trading facility

OJ Official Journal of the European Communities

PA 1890 Partnership Act 1890

PartG professional partnership (Partnerschaftsgesellschaft)

PRA Prudential Regulation Authority (UK)

RUPA Revised Uniform Partnership Act

SCE Societas Europaea Cooperativa (European Cooperative Society)

SCEBG Gesetz über die Beteiligung der Arbeitnehmer und

Arbeitnehmerinnen in einer europäischen Genossenschaft (Act on

the Involvement of Employees in a European Cooperative Society)

SE Societas Europaea (European company)

SEBG Gesetz über die Beteiligung der Arbeitnehmer in einer europäischen

Gesellschaft (Act on the Involvement of Employees in a European

company)

SEC Securities and Exchange Commission

SpruchG Gesetz über das gesellschaftsrechtliche Spruchverfahren (Act on

Appraisal Poceedings)

TFEU Treaty on the Functioning of the European Union

ULPA 2001 Revised Uniform Limited Partnerships Act 2001

UmwG Umwandlungsgesetz (Reorganization Act)

VorG Vorgesellschaft (corporation in formation)

VorstAG Gesetz zur Angemessenheit der Vorstandsvergütung (Act on the

Adequacy of Executive Compensation)

xviii




VorstOG Gesetz über die Offenlegung der Vorstandsvergütungen (Act on the

Disclosure of Executive Compensation)

WpHG Wertpapierhandelsgesetz (Securities Trading Act)

WpPG Wertpapierprospektgesetz (Securities Prospectus Act)

WpÜG Wertpapiererwerbs- und Übernahmegesetz (Securities Acquisition

and Takeover Act)

ZPO Zivilprozessordnung (Code of Civil Procedure)

xix




TABLE OF CASES

Cases with names in bold are reprinted in edited form in this text.

Germany

ARAG v. Garmenbeck (1997), BGH Doc. No. II ZR 175/95, BGHZ 135, 244 449,749

ComROAD Securities Litigation No. IV (2007), BGH Doc. No. II ZR 147/05, NZG2007, 708 667–73

EM.TV, In Re (2005), BGH Doc. No. II ZR 287/02 267–72Deutsche Telekom III (2011), BGH Doc. No. II ZR 141/09, Die AG 2011,

548 260, 272–6

Gelatine, In Re (2004), BGH Doc. No. II ZR 154/02, Der Konzern 2004, 421 16,588, 628–39, 839–40, 842

Girmes, In Re (1995), BGH Doc. No. II ZR 205/94, BGHZ 129, 136 601, 714,738–42

Holzmüller, In Re (1982), BGH Doc. No. II ZR 174/80, BGHZ 83, 122 16, 588,612–28, 630–1, 839–40, 842

IBH/Lemmerz (1990), BGH Doc. No. II ZR 164/88, BGHZ 110, 47 233IKB Shareholder Litigation (2011), BGH Doc. No. XI ZR 51/10, NZG 2012, 263

Chapter 19 fn. 98 and 99

ISION (2011), BGH Doc. No. II ZR 234/09, Der Konzern 2011, 554 448, 459–65ISM GmbH, Plaintiff v. ARGE W. et al. (2001), BGH Doc. No. II ZR 331/00, BGHZ

146, 341 (2001) 136–42

Kali und Salz decision, BGHZ 71, 40, 46 234n68

Linotype, In Re (1988), BGH Doc. No. II ZR 75/87, BGHZ 103, 184 726–8, 740,743, 749, 812

Macrotron Shareholder Litigation (2002), BGH Doc. No. II ZR 133/01, BGHZ 153,47 750

Mannesmann Criminal Litigation (2005), BGH Doc. No. 3 StR 470/04, BGHSt 50,331 518, 525–32

Qivive (2009), BGH Doc. No. II ZR 120/07, BGHZ 180, 38 213Siemens v. Neubürger (2013), LG München I Doc. No. 5 HK O 1387/10, ZIP 2014,

570 413–20, 829

xx




W. J. v. S. Sch. (1966), BGH Doc. No. II ZR 282/63, BGHZ 45, 204 113, 146–9Württembergische Metallwarenfabrik AG (2006), BGH Doc. No. II ZR 137/05,

BGHZ 169, 98 899, 913–18

European Union

Brunner v. European Union Treaty [1994] 1 CMLR 57 27n13

Centros Ltd v. Erhvervs- og Selskabsstyrelsen [1999] ECR I-1459 40–2, 64, 66, 72, 81

Commission of the European Communities v. Federal Republic of Germany CaseC–112/05, October 23, 2007 935

Costa v. ENEL [1964] ECR 585 27n12

Gebhard v. Consiglio dell’Ordine degli Avvocati e Procuratori di Milano [1995]

ECR I-4165 42n100

Kamer van Koophandel en Fabrieken voor Amsterdam and Inspire Art Ltd [2003]ECR I-10155 41, 73–85

Lothar Geltl v. Daimler AG [2012] ECJ C‑19/11 657n91

Marleasing SA v. La Comercial Internacional de Alimentacion SA [1990]ECR I-04135 164, 167–9

Rewe-Zentrale AG v. Bundesmonopolverwaltung für Branntwein [1979] ECR 649

SEVIC Systems AG [2005] C-411/03 779, 786–9Überseering BV v. Nordic Construction Company Baumanagement GmbH (NCC)

[2002] ECR I-09919 41–2, 61–73, 649, 779

United Kingdom

Alexander Ward & Co. v. Samyang Navigation Co. [1975] 1 WLR 673 354n19

Barnett, Hoares & Co. v. South London Tramways Co. (1887) LR 18 QBD

815 369n18

Birch v. Cropper (1889) 14 App Cas 525 (HL) 319n63

Bissel v. Cole (1997) LTL, December 5, 1991 117n70

Blisset v. Daniel (1853) 10 Hare 493 118n71

Bond v. Barrow Haematite Steel Co. [1902] 1 Ch 353 329n68

Borland’s Trustee v. Steel Brothers & Co. [1901] 1 Ch 279, 288 307, 325, 326

Bradford Investments plc, Re [1990] BCC 740 718

Brady v. Brady [1989] AC 755 987, 990, 992–9Brazilian Rubber Plantations and Estates Ltd, Re [1911] 1 Ch 425 445n6

Brownlow v G H Marshall Ltd and others [2000] 2 BCLC 655 561, 562, 563–8Chandler v. Dorsett (1679) Finch 431 36 Cotton v. Imperial and Foreign Agency and

Investment Corporation [1892] 3 Ch 454 118n71

Clements v. Norris (1878) 8 ChD 129 117n68

Cumbrian Newspapers Group Ltd v. Cumberland & Westmorland Herald [1986]3 WLR 26 318–19

Doughty v. Lomagunda Reefs Ltd [1902] 2 Ch 837 807n28

Dubai Aluminium Co. Ltd v. Salaam [2002] UKHL 48 118n80

xxi




Ebrahimi Appellant v. Westbourne Galleries Ltd. and Others Respondents [1973]AC 360 567n43, 714, 720–6

Elgindata Ltd, Re [1991] BCLC 959 445n6

Foss v. Harbottle (1843) 2 Hare 461 720, 752–3

Foster v. Foster [1916] 1 Ch 532 354n19

Freeman & Lockyer (A Firm) v. Buckhurst Park Properties (Mangal) Ltd. andAnother [1964] 2 QB 480 (CA) 373, 379–84

Gliddon, ex parte (1884) 13 QBD 43 118n59

Green v. Hertzog [1954] 1 WLR 1309 116n59

Greenhalgh v. Arderne Cinemas Ltd [1946] 1 All ER 512 319, 321, 336–43Greenwell v. Porter [1902] 1 Ch 530 704, 708–11Harben v. Philips (1883) 23 ChD 14 (CA) 681n1

Hely-Hutchinson v. Brayhead Ltd [1968] 1 QB 549 (CA) 371n31

Heron International Ltd v. Lord Grade [1983] BCLC 244 397n12

Howard Smith Ltd. v. Ampol Petroleum Ltd. [1974] A.C. 821 (Privy

Council) 404n50, 448n15

John Crowther Group plc v. Carpets International plc [1990] BCLC 460 782,784–5, 795–800

Kelner v. Baxter (1866–1867) LR 2 CP 174 159, 177–80, 183London India Rubber Co., Re (1869) LR 5 Eq 519 319n65

Manners v. St. David’s Gold and Copper Mines Ltd [1904] 2 Ch 593 807n28

Menier v. Hooper’s Telegraph Works (1873–1874) LR 9 Ch App 350 718–20Meyer & Co. v. Farber (No. 2) [1923] 2 Ch 421 116n59

Natal Land and Colonization Company Ltd v. Pauline Colliery and Development

Syndicate Ltd [1904] AC 120 160n59

Norman and another v Theodore Goddard (a firm) and others (Quirk, third party)

[1991] BCLC 14, 1028 24n104, 404, 505n54

Nyali Ltd v. Attorney-General [1956] 1 QB 1, 16 99n15

O’Neill v. Phillips [1999] 1 WLR 1092 562n20, 576

Ooregum Gold Mining Company of India Ltd v. Roper [1892] AC 125 192,

192n9, 200n58

Panorama Developments (Guildford) Ltd v. Fidelis Furnishing Fabrics Ltd [1971]

3 WLR 440 369n18

Phonogram Ltd v. Lane [1982] QB 938 160, 180–4Polly Peck International plc, Re (in administration) [1996] 2 All ER 433; [1996]

1 BCLC 428; [1996] BCC 486 842, 868–81

Prudential Assurance Co. Ltd v. Newman Industries (No. 2) [1982] Ch 204 752n35

Puddephatt v. Leith [1916] 1 Ch 200 704Regal (Hastings) Ltd v. Gulliver [1967] 2 AC 134 407, 420–33Royal British Bank v. Turquand [1843–1860] All ER Rep 435; [1843–1860] All ER

Rep 435 370, 378–9

Salomon v. Salomon [1897] AC 22 (HL) 877, 880

Saltdean Estate Co. Ltd, Re [1968] 1 WLR 1844 320n67

xxii




Sam Weller & Sons Ltd, In Re [1990] Ch 682 255, 277–82, 561Saul D. Harrison & Sons Plc. In Re [1995] 1 BCLC 14 562n20

Scandinavian Bank Group plc, In Re [1987] 2 All ER 70 201n65

Schweppes Ltd, Re [1914] 1 Ch 322 (CA) 321n78

Scottish Insurance Corporation v. Wilson & Clyde Coal Co. Ltd [1949] AC 462

(HL) 319n66

Smith and Fawcett Ltd, Re [1942] Ch 304 (CA) 404n49

Torkington v. Magee [1902] 2 KB 247 311n23

Underwood v. London Music Hall Ltd [1901] 2 Ch 309 321n79

UK Takeover Panel

BAT Industries plc Statement 1989/20 – September 15, 1989 943–55British Telecommunications plc (“BT”) Offer for PlusNet plc (“PlusNet”),

Statement 2007/6, February 12, 2007 890

Guinness plc/The Distillers Company plc, Statement 1989/13 – Decision ofSeptember 1987 892, 918–26

United States

Abrams v. Oppenheimer Government Securities, Inc, 737 F 2d 582 (7th

Cir. 1984) 552n70

Aronson, et al. v. Lewis, 473 A 2d 805 (Del. 1984) 447, 449, 465–7, 495, 500,662–3, 666, 974

Bangor Punta Operations, Inc. v. Bangor & Aroostook, 417 US 703 (1974) 750n22

Bank of Augusta v. Earle, 38 US 519 (1839) 92n197

Bank of the United States v. Dandridge, 12 Wheat 64, 25 US 64 (1827) 106n2

Basic Inc. v. Levinson, et al., 485 US 224 (1988) 641, 673–9Benihana of Tokyo, Inc. v. Benihana, Inc. 891 A 2d 150 (2005) 240–52Blasius Industries, Inc. v. Atlas Corp., 564 A 2d 651 (Del. Ch. 1988) 582, 598,

604–12, 930, 966–7

Blue Chip Stamps v. Manor Drug Stores, 421 US 723 (1975) 552n69

Buechner v. Farbenfabriken Bayer AG, 154 A 2d 684 (Del. 1949) 108n2

Business Roundtable v. Securities and Exchange Commission, 905 F 2d 406 (DC

Cir.1990) 48n143, 51n160

Carmody v. Toll Brothers, Inc., 723 A 2d 1180 (Del. Ch. 1998) 929, 934, 955–68Cede & Co. v. Technicolor, Inc., 634 A 2d 345 (Del. 1993) 408n78, 605

Central Iowa Power Co-op. v. Consumers Energy, 741 NW 2d 822 (Iowa

App. 2007) 397n19

Company Stores Development Corp. v. Pottery Warehouse, Inc., 733 SW 2d 886 (Tenn.

App. 1987) 161n64

Cort v. Ash, 422 US 66 (1975) 47n138, 688n39

xxiii




Credit Lyonnais Bank Nederland, NV v. Pathe Communications Corp., 1991 WL

277613 (Del. Ch. 1991) 397n18

CTS Corp. v. Dynamics Corp. of America, 481 US 69 (1987) 89, 93

Cudahy Packing Co. v. Hinkle, 278 US 460 (1929) 57n193

Dasho v. Susquehanna Corporation 380 F 2d 262 (7th Cir. 1967) 988

Diamond v. Oreamuno, 248 NE 2d 910 (NY App. 1969) 547n51

Dirks v. SEC, 463 US 646 (1983) 551

Donahue v. Rodd Electrotype Co., 328 NE 2d 505 (Mass. 1975) 714n4

Dura Pharmaceuticals, Inc., et al. v. Broudo, 544 US 336 (2005) 552n71

Dynamics Corp. of America v. CTS Corp., 794 F 2d 250 (7th Cir. 1986) 47n139

Edgar v. MITE Corp., 457 US 624 (1982) 48n141, 56n186

Eli Lilly & Co. v. Save-On-Drugs, Inc., 366 US 276 (1961) 57n192

Elliott Associates, LP v. Avatex Corp., 715 A 2d 843 (Del. 1998) 323n94

Equitable Trust Co. v. Gallagher, 67 A 2d 50 (Del. Ch. 1949) 18n71, 311

Fairway Development Co. v. Title Insurance Company of Minnesota, 621 F Supp 120(1985) 127, 134–6

Farris v. Glen Alden Corp., 143 A 2d 25 (Pa. 1958) 776n5

Furst v. Brewster, 282 US 493 (1931) 57n193

Gagliardi v. TriFoods Int’l Inc., 683 A 2d 1049 (Del. Ch. 1996) 477

General Overseas Films, Ltd v. Robin International, Inc., 542 F Supp 684(1982) 374, 385–92

Gibbons v. Ogden, 22 US (9 Wheat.) 1 (1824) 48n131

Guth v. Loft, Inc., 5 A 2d 503 (Del. 1939) 407–8, 439, 480

Guttman v. Huang, 823 A 2d 492 (Del. Ch. 2003) 908–13, 977

Hall v. Trans-Lux Daylight Picture Screen Corp., 171 A 226 (Del. Ch. 1934) 498

Hanson Trust plc v. SCM Corp., 774 F 2d 47 (2nd Cir. 1985) 908–13, 977Hariton v. Arco Electronics, Inc., 188 A 2d 123 (Del. 1963) 776n5, 811n64

Hartford Accident & Indemnity Co. v. W. S. Dickey Clay Manufacturing Co., 24 A 2d

315 (Del. 1942) 324n98

Hewlett v. Hewlett-Packard, 2002 WL 549137 (Del. Ch.) 578n20

Hollinger International Inc. v. Conrad M. Black, Hollinger Inc. 844 A 2d 1022(2004) (Del. Ch,) 582, 842, 848–55

Hubbard v. Hollywood Park Realty Enterprises, Inc., 1991 WL 3151 (Del.

Ch.) 597n154

Italo-Petroleum Corp. of America v. Hannigan, 14 A 2d 401 (Del. 1940) 369n21

Ivanhoe Partners v. Newmont Mining Corp., 535 A 2d 1334 (Del. 1987) 732

J. I. Case Co. v. Borak, 377 US 426 (1964) 687n33

Jacobson v. Stern, 605 P 2d 198 (Nev. 1980) 184–7Joseph Greenspon’s Sons Iron & Steel Co. v. Pecos Valley Gas Co., 156 A 350 (Del.

Super. Ct. 1931) 369n21

Kahn v. Lynch Communication Systems, Inc., 638 A 2d 1110 (Del. 1994)729–38, 779, 841, 904

xxiv




Katz v. Bregman, 431 A 2d 1274 (Del. Ch. 1981) 802, 812–14Kelly A. Cleary v. North Delaware A-OK Campground, Inc., et al., CA No. 85COC-

70, 1987 Del. Super. LEXIS 1374 169–72

Kern County Land Co. v. Occidental Petroleum Corp., 411 US 582 (1973) 544n37

Klang v. Smith’s Food & Drug Centers, Inc., 702 A 2d 150 (Del. 1997) 267, 287,296, 298–305

Lacos Land Company v. Arden Group, Inc., et al., 517 A 2d 271 (Del.Ch. 1986) 324, 327–36

Lewis v. Scotten Dillon Co., 306 A 2d 755 (Del. Ch. 1973) 205, 215–18Meinhard v. Salmon et al. 164 NE 545 (1928) 125, 142–5Melzer v. CNET Networks, Inc., 934 A 2d 912 (Del. Ch. 2007) 644, 662–7Merrill Lynch, Pierce, Fenner & Smith v. Ware, 414 US 117 (1973) 51n156

Millenco LP v. meVC Draper Fischer Jurvetson Fund I, Inc., 824 A 2d 11 (Del.

Ch. 2002) 597n154

MM Companies, Inc. v. Liquid Audio, Inc., 813 A 2d 1118 (Del. 2003) 582n32

Mohawk Carpet Mills, Inc. v. Delaware Rayon Co., 110 A 2d 305 (Del.

Ch. 1954) 310n21

Moody v. Security Pacific Business Credit, Inc., 971 F 2d 1056 (3rdCir. 1992) 987, 999–1013

Oil Spill by the “Amoco Cadiz” off the Coast of France on March 16, 1978, In Re,1984 US Dist. LEXIS 17480; 20 ERC (BNA) 2041 842, 865–8

Paramount Communications, Inc. v. QVC Networks, Inc., 637 A 2d 34(Del. 1994) 790–4

Pembina Consolidated Silver Mining & Milling Co. v. Pennsylvania, 125 US 181

(1888) 58n197

Perlman v. Feldmann, 219 F 2d 173 (D. Conn. 1957) 578n21

Phillips Petroleum Co. v. Jenkins, 297 US 629 (1936) 57n193

Pike v. Bruce Church, Inc., 397 US 137 (1970) 56n186

Printz v. United States, 521 US 898, 935 (1997) 49n146

Railway Express Agency, Inc. v. Virginia, 282 US 440 (1931) 18n63, 57n192

Rave Communications, Inc. v. Entertainment Equities, Inc. In Re 138 BR 390(1992) 842, 860–5

Revlon, Inc. v. MacAndrews & Forbes Holdings, Inc., 506 A 2d 173(Del. 1986) 929, 934, 968–79, 986–7

Robert F. Broz and RFB Cellular, Inc. v. Cellular Information Systems, Inc. 673A 2d 148 (1996) 409, 412, 434–43

Sanders v. John Nuveen & Co., Inc., 554 F 2d 790 (7th Cir. 1977) 552n68

Santa Fe Industries, Inc. v. Green, 430 US 462 (1977) 688n39

Schnell v. Chris-Craft Industries, Inc., 285 A 2d 437 (Del. 1971) 704–6, 858Shields Development Company v. Shields WL 7636 (Del. 1981) 561–2, 568–72Sinclair Oil Corp. v. Francis S. Levien, 280 A 2d 717 (Del. 1971) 714, 836, 844–8Singer v. Magnavox Co., 380 A 2d 969 (Del. 1977) 53n166

xxv




Southerland, ex rel. Snider v. Decimo Club, Inc., 142 A 786 (Del.

Ch. 1928) 166n80

Stone, ex rel. AmSouth Bancorporation v. Ritter, 911 A 2d 362

(Del. 2006) 407n75, 667

Storetrax.com, Inc. v. Gurland, 915 A 2d 991 (Md. 2007) 397n20

Stroud v. Grace, 606 A 2d 75 (Del. 1992) 597n154, 685n20

Timberline Equipment Co., Inc. v. Davenport, 514 P 2d 1109 (Or. 1973) 163,173–7

Tooley v. Donaldson, Lufkin & Jenrette, Inc., 845 A 2d 1031 (Del. 2004) 746,754–7

Tyson Foods, Inc., In Re, 2007 WL 2351071 (Del. Ch.) 510n28

United States v. O’Hagan, 521 US 642 (1997) 551n67

United States v. Tabor Court Realty, 803 F 2d 1288 (3rd Cir. 1986) 980n1, 987,

987n24, 999, 1005, 1008, 1012

Unocal Corp. v. Mesa Petroleum Co., 493 A 2d 946 (Del. 1985) 492–500Vantagepoint Venture Partners 1996 v. Examen, Inc., 871 A 2d 1108

(Del. 2005) 42, 47, 58, 85–93

Walt Disney Company Derivative Litigation, In Re, 907 A 2d 693 (Del.Ch. 2005) 467–91

Weinberger v. UOP, Inc., 457 A 2d 701 (Del. 1983) 811, 814–23, 904, 907Wells Fargo Bank v. Desert View Building Supplies, Inc., 475 F Supp 693

(1978) 282–5

Young v. National Association for Advancement of White People, 109 A 2d 29

(Del. Ch. 1954) 166n83

Zapata Corp. v. Maldonado, 430 A 2d 779 (Del. 1981) 757–62

xxvi




TABLE OF LEGISLATION

European Union legislation

Directives

Company law

Directive 2009/101/EC of the European Parliament and of the Council of 16 September

2009 on coordination of safeguards which, for the protection of the interests of

members and third parties, are required by Member States of companies within the

meaning of the second paragraph of Article 48 of the Treaty, with a view to making

such safeguards equivalent, OJ L 258/11, replacing First Council Directive (68/151/

EEC) of 9 March 1968 (First Company Law Directive), OJ 1968 L65/8 167

Directive 2012/30/EU of the European Parliament and of the Council of 25 October

2012 on coordination of safeguards which, for the protection of the interests of

members and others, are required by Member States of companies within the

meaning of the second paragraph of Article 54 of the Treaty on the Functioning of

the European Union, in respect of the formation of public limited liability

companies and the maintenance and alteration of their capital, with a view to

making such safeguards equivalent, OJ L 315/74, replacing Second Council

Directive 77/91/EEC of 13 December 1976, OJ L 26/1 (Second Company Law

Directive) 844, 964, 964n16

Directive 2011/35/EU of the European Parliament and of the Council of 5 April 2011

concerning mergers of public limited liability companies, OJ L 110/1, replacing

Third Council Directive (78/855/EEC) of 9 October 1978 (Third Company Law

Directive), OJ 1977 L295/36 30n30, 778, 805n16

Fourth Council Directive (78/660/EEC) of 25 July 1978 based on Article 54(3)(g) of the

Treaty on the annual accounts of certain types of companies (Fourth Company Law

Directive), OJ 1978 L222/11 29n29

Sixth Council Directive (82/891/EEC) of 17 December 1982 based on Article 54(3)(g)

of the Treaty, concerning the division of public limited liability companies (Sixth

Company Law Directive), OJ 1982 L378/47 30n30

Seventh Council Directive (83/349/EEC) of 13 June 1983 based on the Article 54(3)(g)

of the Treaty on consolidated accounts (Seventh Company Law Directive), OJ 1983

L193/1 29n29

xxvii




Eighth Council Directive (84/253/EEC) of 10 April 1984 based on Article 54(3)(g) of the

Treaty on the approval of persons responsible for carrying out the statutory audits of

accounting documents (Eighth Company LawDirective), OJ 1984 L126/20 29n29

Council Directive (88/627/EEC) of 12 December 1988 on the information to be

published when a major holding in a listed company is acquired or disposed of, OJ

1988 L348/62 716n8

Eleventh Council Directive (89/666/EEC) of 21 December 1989 concerning disclosure

requirements in respect of branches opened in a Member State by certain types of

company governed by the law of another State (Eleventh Company Law Directive),

OJ 1989 L395/36 28, 30, 41, 42, 78–80, 82, 83, 84

Twelfth Council Company Law Directive of 21 December 1989 on single-member

private limited-liability companies (Twelfth Company Law Directive), OJ 1989

L395/40 30n32

Council Directive 2001/86/EC of 8 October 2001 supplementing the Statute for a

European company with regard to the involvement of employees (SE Directive), OJ

2001 L294/22 30, 781, 810

Directive 2004/25/EC of the European Parliament and of the Council of 21 April 2004

on takeover bids (Takeover Directive), OJ 2004 L142/12 30, 38, 314, 536, 885,

886, 888, 889, 891, 894, 896, 927, 933n5, 935

Directive 2005/56/EC of the European Parliament and of the Council of 26 October

2005 on cross-border mergers of limited liability companies (Cross-Border Merger

Directive), OJ 2005 L310/1 780n20

Directive 2007/36/EC of the European Parliament and of the Council of 11 July

2007 on the exercise of certain rights of shareholders in listed companies

(Shareholder Rights Directive), OJ 2007 L184/17 30n39, 516n60, 517, 575,

583, 584, 694, 703, 827, 832, 833, 834

Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June

2017 relating to certain aspects of company law, OJ L 169/46 3, 29, 30, 49, 150,

152, 154, 158, 160, 162, 164, 165, 188, 191, 193, 194, 195, 197, 198, 200, 201, 205,

206, 219, 228, 229, 233, 234, 235, 236, 237, 240, 254, 255, 256, 257, 258, 265, 267,

286, 287, 289, 290, 292, 293, 363, 365, 502, 522, 644, 767, 768, 778, 780, 781, 785,

801, 805, 807, 808, 809, 980, 984, 985, 986, 987, 991

Capital markets

Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003

on insider dealing and market manipulation (market abuse) (Market Abuse

Directive), OJ 2003 L96/16 43, 287, 290, 291, 545, 546, 656, 657, 659

Directive 2003/71/EC of the European Parliament and of the Council of 4 November

2003 on the prospectus to be published when securities are offered to the public or

admitted to trading and amending Directive 2001/34/EC (Prospectus Directive), OJ

2003 L345/64 xxix, xxx, 31, 32, 226, 645n33, 647n43, 650

xxviii




Commission Directive 2003/125/EC of 22 December 2003 implementing Directive

2003/6/EC of the European Parliament and of the Council as regards the fair

presentation of investment recommendations and the disclosure of conflicts of

interest (Level 2 Market Abuse Directive on Broker Advice), OJ 2003 L339/

73 xxx, xviii

Directive 2004/39/EC of the European Parliament and of the Council of 21 April

2004 on markets in financial instruments amending Council Directives 85/611/

EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and

of the Council and repealing Council Directive 93/22/EEC (MiFID I), OJ 2004

L 145/1

Commission Directive 2004/72/EC of 29 April 2004 on implementing Directive 2003/

6/EC of the European Parliament and of the Council as regards accepted market

practices, the definition of inside information in relation to derivatives on

commodities, the drawing up of lists of insiders, the notification of managers’

transactions and the notification of suspicious transactions (Level 2 Market Abuse

Directive), OJ 2004 L162/70 xviii, xxx

Directive 2004/109/EC of the European Parliament and of the Council of

15 December 2004 on the harmonization of transparency requirements in

relation to information about issuers whose securities are admitted to

trading on a regulated market and amending Directive 2001/34/EC

(Transparency Directive), OJ 2004 L390/38 xxix, xxx, 31, 40, 43, 44n115,

509, 536, 647n43, 640, 646, 647, 648, 649, 650, 651, 654, 656, 658, 659, 712,

716n9, 717, 892

Commission Directive 2007/14/EC of 8 March 2007 laying down detailed rules for the

implementation of certain provisions of Directive 2004/109/EC on the

harmonization of transparency requirements in relation to information about

issuers whose securities are admitted to trading on a regulated market (Level

2 Transparency Directive), OJ 2007 L69/27 xxix, 648n50

Directive 2013/36/EU of the European Parliament and of the Council of 26 June

2013 on access to the activity of credit institutions and the prudential

supervision of credit institutions and investment firms (CRD IV), amending

Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/

EC 522n115, 523, 524

Directive 2013/50/EU of the European Parliament and of the Council of

22 October 2013 amending Directive 2004/109/EC of the European Parliament and

of the Council on the harmonisation of transparency requirements in relation to

information about issuers whose securities are admitted to trading on a regulated

market, Directive 2003/71/EC of the European Parliament and of the Council on the

prospectus to be published when securities are offered to the public or admitted to

trading and Commission Directive 2007/14/EC laying down detailed rules for the

implementation of certain provisions of Directive 2004/109/EC 645n33,

648n37, 646n40, 648n46, 648n49, 716n9, 717n13

xxix




Directive 2014/57/EU of the European Parliament and of the Council of 16 April 2014 on

criminal sanctions for market abuse (market abuse directive), OJ 2014 L173/

179 533, 553, 553n78

Directive 2014/65/EU of the European Parliament and of the Council of 15 May

2014 on markets in financial instruments and amending Directive 2002/92/EC and

Directive 2011/61/EU (recast) (MiFID II), OJ 2014 L 173/349 888

Regulations

Council Regulation 2157/2001, of 8 October 2001 on the Statute for a European

company (SE) (SE Regulation), OJ 2001 L294/1 30, 781, 782, 801, 809

Regulation No. 1606/2002 of the European Parliament and of the Council of 19 July

2002 on the application of international accounting standards (IFRS Regulation), OJ

2002 L243/1 29, 263n34, 265, 509, 519, 523, 647, 832

Commission Regulation (EC) No. 2273/2003 of 22 December 2003 implementing

Directive 2003/6/EC of the European Parliament and of the Council as regards

exemptions for buy-back programmes and stabilisation of financial instruments

(Buy-back Regulation), OJ 2003 L336/33 71, 241, 245, 246, 249, 251, 462

Commission Regulation (EC) No. 809/2004 of 29 April 2004 implementing

Directive 2003/71/EC of the European Parliament and of the Council as regards

information contained in prospectuses as well as the format, incorporation by

reference and publication of such prospectuses and dissemination of advertisements

(Prospectus Regulation), OJ 2004 L149/1 296

Regulation No. 1095/2010 of the European Parliament and of the Council of

24 November 2010 establishing a European Supervisory Authority (European

Securities and Markets Authority), amending Decision No 716/2009/EC and

repealing Commission Decision 2009/77/EC, OJ 2010 L331/84 36n72

Regulation (EU) No 596/2014 of the European Parliament and of the Council of

16 April 2014 on market abuse (market abuse regulation – MAR) and repealing

Directive 2003/6/EC of the European Parliament and of the Council and

Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC,

OJ 2014 L173/1 22, 31, 32, 39, 286, 290n13, 291, 522, 536, 545, 546,

549, 554, 555, 640, 656

Commission Delegated Regulation (EU) 2016/522 of 17 December 2015 supplementing

Regulation (EU) No 596/2014 of the European Parliament and of the Council as

regards an exemption for certain third countries public bodies and central banks,

the indicators of market manipulation, the disclosure thresholds, the competent

authority for notifications of delays, the permission for trading during closed

periods and types of notifiable managers’ transactions 32n52

Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 supplementing

Regulation (EU) No 596/2014 of the European Parliament and of the Council with

regard to regulatory technical standards for the conditions applicable to buy-back

xxx




programmes and stabilisation measures (Buy-back Regulation) 286, 291, 292,

297, 555

Communications, Recommendations and Notices

CESR Advice on the Second Set of Level 2 Implementing Measures for the Market

Abuse Directive, CESR/03–212c (August 2003).

CESR Market Abuse Directive: Level 3 – Second Set of CESR Guidance and

Information on the Common Operation of the Directive to the Market,” CESR/

06–562b (July 2007). 657n89

CESRMarket Abuse Directive: Level 3 – Third Set of CESR Guidance and Information on

the Common Operation of the Directive to the Market”, CESR/09–219 (May

2009). 657n89, 657n90

Report from the Commission, ‘Operation of Directive 2004/109/EC on the

harmonisation of transparency requirements in relation to information about

issuers whose securities are admitted to trading on a regulated market’, Brussels,

27 May 2010, COM (2010) 243 final. 44n115

8811/15 DRS 39 CODEC 706, Outcome of Proceedings: Proposal for a Directive of the

European Parliament and of the Council on single-member private limited liability

companies, May 29, 2015. 45n118

Final Report, Draft technical standards on the Market Abuse Regulation, 28 September

2015, ESMA/2015/1455. 32n53

Draft guidelines on the Market Abuse Regulation, 28 January 2016, ESMA/2016/

162. 32n54

Consultation Paper, ESMA’s guidelines on information expected or required to be

disclosed on commodity derivatives markets or related spot markets under MAR,

30 March 2016, ESMA/2016/444. 32n54

Draft Implementing Technical Standards on the technical means for appropriate public

disclosure of inside information and for delaying the public disclosure of inside

information, 17 June 2016, ESMA/2016/982. 32n53

ESMA Guidelines on MAR - information relating to commodity derivatives markets or

related spot markets for the purpose of the definition of inside information on

commodity derivatives, ESMA/2016/1412 (September 2016). 32, 656n88

German legislation

Statutes

Co-Determination Act of 1976 (Gesetz über die Mitbestimmung der Arbeitnehmer),

BGBl. vol. I, p. 1153, vol. III, pp. 801–808 (May 4, 1976) (MitbestG) 360,

362–3, 913

Fourth Act for the Promotion of Financial Markets (Viertes

Finanzmarktförderungsgesetz), BGBl. vol. I p. 2010 (June 21, 2002) (4. FMG)

Chapter 19 fn. 97 658n92

xxxi




Law for the Modernization of Accounting Law of 2009 (Gesetz zur Modernisierung des

Bilanzrechts), BGBl. vol. I, p. 1102 (May 25, 2009) (BilMoG) 293

Law Implementing the Shareholder Rights Directive of 2009 (Gesetz zur

Umsetzung der Aktionärsrechterichtlinie), BGBl. vol. I, p. 2479 (August 4, 2009)

(ARUG) 197n41

Law Implementing the First Directive of the European Council on the Coordination of

Company Law (Gesetz zur Durchführung der Ersten Richtlinie des Rates der

Europäischen Gemeinschaften zur Koordinierung des Gesellschaftsrechts) of August

15, 1969, BGBl. vol. I, p. 1146 (1969)

Law Modernizing the Limited Liability Company Act and the Prevention of Abuse of

2008 (Gesetz zur Modernisierung des GmbH-Rechts und zur Vehinderung von

Missbräuchen), BGBl. vol. I, p. 2026 (October 23, 2008) (MoMiG) 42, 264, 275

Law on the Adequacy of Executive Compensation of 2009 (Gesetz zur Angemessenheit

der Vorstandsvergütung), BGBl. vol. I, p. 2509 (August 4, 2009) (VorstAG) 518

Law Providing for One-Third Representation of the Employees on the Supervisory

Board of 2004 (Gesetz über die Drittelbeteiligung der Arbeitnehmer im Aufsichtsrat),

BGBl. vol. I, p. 974 (May 18, 2004) (DrittelbG) 361, 363

Limited Liability Company Act/Close Corporation Act of 1892 (Gesetz betreffend die

Gesellschaften mit beschränkter Haftung), RGBl. vol. I, p. 477 (April 20, 1892)

(GmbHG) 15, 200, 213–14, 262, 264

Management Board Compensation Disclosure Act of 2005 (Vorstandsvergütungs-Off

enlegungsgesetz), BGBl. vol. I, p. 2267 (August 3, 2005) (VorstOG) 517n72

Monitoring and Transparency in Business Undertakings Act of 1997 (Gesetz zur

Kontrolle und Transparenz im Unternehmensbereich), BGBl. vol. I, p. 786 (April 27,

1997) (KonTraG) 696n95, 936

Reorganization Act of 1994 (Umwandlungsgesetz), BGBl. vol. I, p. 3210 (October 28,

1994) (UmwG) 15, 749

Securities Acquisition and Takeover Act of 2001 (Wertpapiererwerbs- und

Übernahmegesetz), BGBl. vol. I, p. 3822 (December 20, 2001) (WpÜG) 16,

536, 749, 777, 805, 890, 896, 898, 900, 902, 913, 915–18

Securities Prospectus Act of 2005 (Gesetz über die Erstellung, Billigung undVeröffentlichung

des Prospekts, der beim öffentlichen Angebot von Wertpapieren oder bei der Zulassung

von Wertpapieren zum Handel an einem organisierten Markt zu veröff entlichen ist –

Wertpapierprospektgesetz), BGBl. vol. I, 1698 (June 22, 2005) (WpPG) 649

Securities Trading Act of 1998 (Wertpapierhandelgesetz), BGBl. vol. I, p. 2708

(September 9, 1998) (WpHG) 11, 16, 536, 554, 649, 656, 658, 670, 716–17

Stock Corporation Act (Aktiengesetz) of 1965, BGBl. vol. I, 1089, vol. III, p. 4121–1

(September 6, 1965) as introduced by the Stock Corporation Introduction Act of

1965 (Einführungsgesetz zum Aktiengesetz), BGBl. vol. I, p. 1185 (September 6,

1965) (AktG) 14f, 14–17, 34–6, 37f, 42, 151–3, 196, 229, 262, 293, 316–17, 352,

447–8, 514, 518–19, 539–40, 542, 644–5, 804–5, 832, 834–40, 900–1, 988–90

xxxii




Transparency Directive Implementing Act (Transparenzrichtlinie-Umsetzungsgesetz),

BGBl. vol. I, p. 10 (January 5, 2007) (TUG) 649

Regulations

Regulation Concerning the Contents of the Offer Document, the Consideration for

Takeover Bids and Mandatory Bids, and Exemptions from the Obligation to Publish

and Launch a Bid (Verordnung über den Inhalt der Angebotsunterlage, die

Gegenleistung bei Übernahmeangeboten und Pflichtangeboten und die Befreiung von

der Verpflichtung zur Veröffentlichung und zur Abgabe eines Angebots) (WpÜG Bid

Regulation) 896

Verordnung über die Zulassung von Wertpapieren zum regulierten Markt einer

Wertpapierbörse (Börsenzulassungs-Verordnung – BörsZulV), In der Fassung der

Bekanntmachung vom 9. September 1998 (BGBl. I S. 2832), FNA 4110–1–1, Zuletzt

geändert durch Art. 2 Abs. 43 G zur Änd. von Vorschriften über Verkündung und

Bekanntmachungen sowie der ZPO, des EGZPO und der AO vom 22. 12. 2011

(BGBl. I S. 3044) 35n59, 648–9, 649n51

United Kingdom legislation

Statutes

Companies Act 2006 (CA 2006) 9, 13, 18, 20–2, 33, 37, 49, 120, 153–6, 162, 260,

264–5, 295–6, 373, 404, 544–5, 589, 645, 713, 750, 806–9, 840, 888–9, 990–1

Criminal Justice Act 1993 22, 536, 552–4

Financial Services Act 2012 21n92, 39n84

Financial Services and Markets Act 2000 (FSMA 2000) 37

Insolvency Act 1986 21, 404, 721

Limited Liability Partnerships Act 2000 (LLPA 2000) 119

Limited Partnerships Act 1907 (LPA 1907) 105, 121

Partnership Act 1890 (PA 1890) 105, 115

Statutory instruments, regulations and other authoritative texts

Combined Code on Corporate Governance, Financial Reporting Council, June 2008

(Combined Code) 36, 589

Companies (Model Articles) Regulations 2008, SI 2008 No. 3229 (MAPC) 320,

521, 589

Disclosure andTransparencyRules (Financial Services Authority) (DTRs) 650–1, 659

Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations

2008, SI 2008 No. 410 645, 700

Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act

2006) Regulations 2008, SI 2008 No. 1911 127

Limited Liability Partnerships Regulations 2001, SI 2001 No. 1090 120

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Listing Rules (Financial Services Authority) (LRs) 22, 39, 295–6, 355, 520–2,

537–8, 545, 549, 589, 591, 659, 701, 807

Takeover Code (Panel on Takeovers and Mergers, 9th edn., 2009) (Takeover

Code) 888, 902, 934

United States legislation

Federal statutes

Bankruptcy Code, 11 USC §§ 101–1330 (2000) 207, 861, 987, 1000, 1003–5, 1008

Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. No.

111–203, 124 Stat. 1326 55, 59, 513–14

Investment Advisers Act of 1940, 15 USCA §§ 80b-1–80b-21 (2000) 54, 54n172

National Securities Markets Improvements Act of 1996, Pub. L. No. 104–290, 112

Stat. 3416 (NSMIA) 47n134

Public Utility Holding Company Act of 1935, 15 USCA §§ 79–79z-6 (2000) 54

Sarbanes–Oxley Act of 2002, Pub. L. No. 107–204, 116 Stat. 745 48, 52, 54, 58–9,

509, 537

Securities Act of 1933, 15 USCA §§ 77a–77aa (2000) (Securities Act) 19, 645, 652,

803, 911, 988

Securities Exchange Act of 1934, 15 USCA §§ 78m(a) (2000) (Exchange Act) 10,

652, 673, 716

Securities Litigation Uniform Standards Act of 1998, Pub. L. No. 105–353, 112

Stat. 3227 (SLUSA) 47n134

Trust Indenture Act of 1939, 15 USCA §§ 77aaa–77bbbb (2000) 20, 54

State statutes and model laws

Model Business Corporation Act (2008) (Model Act) 9, 17–20, 49–50, 369, 645

Revised Uniform Limited Liability Company Act (2006) (RULLCA) 131

Revised Uniform Limited Partnerships Act (2001) (ULPA 2001) 128–30

Revised Uniform Partnership Act (1997) (RUPA) 106, 124–8

Uniform Fraudulent Transfers Act (1984) 55, 987

Federal rules and regulation

General Rules and Regulations, Securities Exchange Act of 1934, 17 CFR Part

240 11n32, 55n178, 297n76, 297n77, 297n78, 298n80, 409n83, 409n85,

409n86, 501, 512n38

Standard Instructions for Filing Forms under Securities Act of 1933, Securities

Exchange Act of 1934, and Energy Policy and Conservation Act of 1975, 17 CFR

Subpart 229 (Regulation SK) 10, 32, 226, 409n83, 409n85, 501, 512n38, 652,

673

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Documents

COMPARATIVE COMPANY LAW...COMPARATIVE COMPANY LAW When comparing the laws of different jurisdictions, one often sees only the forest or the trees. This is particularly problematic