CONVERGENCE IN SHAREHOLDER LAW - Assetsassets.cambridge.org/97805218/76759/frontmatter/... · 2007. 12. 7. · 1. Dimensions of convergence in shareholder law 7 I. The spatial dimension:

CONVERGENCE IN SHAREHOLDER LAW

On the one hand, it can be argued that the increasing economic and politi-cal interdependence of countries has led to the convergence of national legalsystems. On the other hand, advocates of the counterhypothesis maintainthat this development is both unrealistic and unnecessary.

Mathias Siems examines the company law of the UK, the USA,Germany, France, Japan and China to see how this issue affects share-holder law. The author subsequently analyses economic and political fac-tors which may or may not lead to convergence, and assesses the extent ofthis development. Thus, Convergence in Shareholder Law not only providesa thorough comparative legal analysis but also shows how company lawinterconnects with political forces and economic development and helpsin evaluating whether harmonisation and shareholder protection shouldbe enhanced.

mathias m. siems is a Reader in Commercial Law at the University ofEdinburgh and a Research Associate at the Centre for Business Research,University of Cambridge.

© Cambridge University Press www.cambridge.org

Cambridge University Press978-0-521-87675-9 - Convergence in Shareholder LawMathias M. SiemsFrontmatterMore information

http://www.cambridge.org/0521876753

http://www.cambridge.org


international corporate law andfinancial market regulation

Recent years have seen an upsurge of change and reform in corporate law andfinancial market regulation internationally as the corporate and institutionalinvestor sector increasingly turns to the international financial markets. Thisfollows large-scale institutional and regulatory reform after a series ofinternational corporate governance and financial disclosure scandalsexemplified by the collapse of Enron in the US. There is now a great demand foranalysis in this area from the academic, practitioner, regulatory and policysectors.

The International Corporate Law and Financial Market Regulation series willrespond to that demand by creating a critical mass of titles which will addressthe need for information and high quality analysis in this fast developing area.

Series EditorsProfessor Eilis Ferran, University of CambridgeProessor Niamh Moloney, University of NottinghamProfessor Howell Jackson, Harvard Law School

Editorial BoardProfessor Marco Becht, Professor of Finance and Economics at Universite Librede Bruxelles and Executive Director of the European Corporate GovernanceInstitute (ECGI).

Professor Brian Cheffins, S.J. Berwin Professor of Corporate Law at the Facultyof Law, University of Cambridge.

Professor Paul Davies, Cassel Professor of Commercial Law at the LondonSchool of Economics and Political Science.

Professor Luca Enriques, Professor of Business Law in the Faculty of Law at theUniversity of Bologna.

Professor Guido Ferrarini, Professor of Law at the University of Genoa andHonorary Professor, Faculty of Law, University College London.

Professor Jennifer Hill, Professor of Corporate Law at Sydney Law School.

Professor Klaus J. Hopt, Director of the Max Planck Institute of Comparativeand International Private Law, Hamburg, Germany.

Professor Hideki Kanda, Professor of Law at the University of Tokyo.

Professor Colin Mayer, Peter Moores Professor of Management Studies at theSaıd Business School and Director of the Oxford Financial Research Centre.

James Palmer, Partner of Herbert Smith, London.

Professor Michel Tison, Professor at the Financial Law Institute of theUniversity of Ghent.

Andrew Whittaker, General Counsel to the Board at the UK Financial ServicesAuthority.

Professor Eddy Wymeersch, Chairman of the Committee of European SecuritiesRegulators (CESR), Co-Chair of the CESR-European Central Bank WorkingGroup on Clearing and Settlement, and part time Professor of Commercial Law,University of Ghent, Belgium.






CONVERGENCE IN

SHAREHOLDER LAW

MATHIAS M. SIEMS






cambridge university pressCambridge, New York, Melbourne, Madrid, Cape Town, Singapore, Sao Paulo, Delhi

Cambridge University PressThe Edinburgh Building, Cambridge CB2 8RU, UK

Published in the United States of America by Cambridge University Press, New York

www.cambridge.orgInformation on this title: www.cambridge.org/9780521876759

C© Mathias Siems 2008

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 withoutthe written permission of Cambridge University Press.

First published 2008

Printed in the United Kingdom at the University Press, Cambridge

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

ISBN 978-0-521-87675-9 hardback

Cambridge University Press has no responsibility for the persistence or accuracy of URLs forexternal 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

Preface and acknowledgments page ixList of abbreviations xTable of cases xixTable of legislation xxiii

Introduction 1

part i The object and course of the investigation

1. Dimensions of convergence in shareholder law 7I. The spatial dimension: the legal systems covered 7

II. The objective dimension: the shareholder of a joint stock company 10

III. The temporal dimension 17

IV. The methodological dimension 23

V. Summary 26

part ii The status quo of convergence

2. Legal bases 31I. International and regional law 31

II. Statute law and case law 34

III. Company and securities law 37

IV. Self-regulation and state regulation 45

V. Conclusion 59

3. Bases for a shareholder typology 60I. The shareholder in the theoretical debate 60

II. Real types of shareholder 64

III. Conclusions 66

v






vi contents

4. The ‘shareholder as such’ 68I. The profit-oriented shareholder 68

II. The active shareholder 87

III. The informed shareholder 120

IV. The anonymous shareholder 136

V. Conclusions to this chapter 147

5. The shareholder in the power structure of the company 149I. The deciding shareholder 150

II. The protected shareholder 174

III. The litigating shareholder 210

IV. Conclusions to this chapter 222

6. Conclusions to Part II 224I. Divergence and convergence 224

II. Globalization and Americanization 226

III. Convergence and artificial convergence 228

part iii Developmental trends and patterns

7. Bases 231I. The dependency of shareholder law 231

II. Regulatory levels of shareholder law 239

III. Regulatory forms at the national level 244

IV. Conclusions to this chapter 248

8. Convergence through congruence 250I. General cultural and economic-policy approximation 250

II. The convergence of legal cultures 255

III. Internationalization of the economy 263

IV. Approximation of shareholder structures 277

V. Legislative responses 290

9. Convergence through pressure 297I. Pressure from company founders 297

II. Pressure from management 307

III. Pressure from shareholders 310

IV. Pressure from other interest groups 314

V. Pressure from international organizations and foreign states 316

VI. Legislative responses 317






contents vii

10. Future convergences in shareholder law 336I. The ‘shareholder as such’ 336

II. The shareholder in the power structure of the company 353

11. Conclusions to Part III 366I. Re-regulation 366

II. Convergence forces 367

III. Changes in future law 368

part iv Conclusion

12. Convergence as a model for the future 373I. Convergence ‘from above’ 373

II. Convergence ‘from below’ 381

III. The object of convergence in shareholder law 391

IV. Conclusion 395

13. Summary of principal findings 396

References 401Index 451






PREFACE AND ACKNOWLEDGMENTS

In the last fifteen years, the words ‘globalization’, ‘internationalization’and ‘Europeanization’ have been seen and heard everywhere. The legaldiscussion has been no exception: on the one hand, it has sometimesbeen claimed that national legal systems are increasingly convergent. Onthe other hand, advocates of the counterhypothesis maintain that conver-gence of legal systems is neither realistic nor necessary. This book takes alook at how to approach this issue in relation to shareholder law. Althoughthere are already some publications which deal with company law con-vergence, the reader is often left disappointed. With respect to similaritiesand differences between countries, the previous literature is dominatedby broad statements about different corporate governance systems andanecdotal stories of convergence. A detailed legal analysis is, however,lacking. Similarly, with respect to convergence forces and hurdles, therehas often been only a perfunctory analysis of particular topics, such asregulatory competition or shareholder ownership. But, again, a coherentand comprehensive account is missing. Thus, this book aims at filling thatgap. Its structure is as follows. First, it compares the company laws of theUnited Kingdom, the USA, Germany, France, Japan and China. Secondly,it analyzes economic and political factors, which might (or might not)lead to convergence. Finally, it assesses this development.

I started writing the German version of this monograph in June2001 when I was just finishing my LLM in Edinburgh. Since then Ihave worked and lived in Paris, Berlin, Hamburg, Florence, Cambridge(Massachusetts), Riga, Cambridge (England), and again Edinburgh. Ithank everyone who encouraged my research. Specifically for the Englishedition, I would like to thank Iain Fraser (Florence), Chris Goddard (Riga)and Kim Hughes (Cambridge University Press) for their help and sup-port, as well as Eilıs Ferran, Niamh Moloney and Howell Jackson as theeditors of the series on International Corporate Law and Financial MarketRegulation.

ix






ABBREVIATIONS

AC UK Law Reports: Appeal CasesAcP Archiv fur die civilistische PraxisAG AktiengesellschaftALI-Principles American Law Institute (ALI), Principles

of Corporate Governance: Analysis andRecommendations, 1994

All ER All England Law ReportsALR Australian Law ReportsAm. J. Comp. L. American Journal of Comparative LawAmer. Econ. Rev. American Economic ReviewAriz. J. Int’l & Comp. L. Arizona Journal of International and

Comparative Law

BB Betriebs-BeraterBCLC Butterworths Company Law CasesBell J. Econ. Bell Journal of Economics and

Management ScienceBerkeley Bus. L.J. Berkeley Business Law JournalBerkeley J. Int’l L. Berkeley Journal of International LawBGBl. German Federal Law Gazette

(Bundesgesetzblatt)BGH German Supreme Court

(Bundesgerichtshof)BGHZ Decisions of the German Supreme Court

(in private law matters)BJIR British Journal of Industrial RelationsBond L. Rev. Bond Law ReviewBrook. J. Int’l L. Brooklyn Journal of International LawBT-Drucks. Printed Matters of the German Bundestag

(Bundestagsdrucksacke)

x






list of abbreviations xi

BU Int’l L.J. Boston University International LawJournal

Bus. Hist. Business HistoryBus. Law. Business LawyerBVerfG German Constitutional Court

(Bundesverfassungsgericht)BVerfGE Decisions of the German Constitutional

CourtC. & SLJ Company and Securities Law JournalCal. App. California Appellate ReportsCal. L. Rev. California Law ReviewCal. Rptr. California ReporterCalGCL California General Corporation LawCalPERS California Public Employees’ Retirement

SystemCardozo J. Int’l & Comp. L. Cardozo Journal of International and

Comparative LawCardozo L. Rev. Cardozo Law ReviewCEO Chief Executive OfficerCFO Chief Financial Officerch., chs., Ch., Chs. Chapter, ChaptersCh., ChD UK Law Reports: Chancery DivisionChinArticles Chinese Guide to Articles of Association

of Companies Limited by Shares of6 December 1997

ChinCA Chinese Companies ActChinCG-Code Code of Corporate Governance for Listed

Companies of the China SecuritiesRegulatory Commission (CSRC) (Englishtranslation available atwww.csrc.gov.cn/en/homepage/index en.jsp)

ChinMandProv Chinese Mandatory Provisions in theArticles of Association for CompaniesListed Overseas of 27 August 1994(English translation available at ChinaLaw and Practice, Vol. 9 (1995), No. 4,p. 19)

ChinSA Chinese Securities Act






xii list of abbreviations

CLJ Cambridge Law JournalColum. Bus. L. Rev. Columbia Business Law ReviewColum. J. Eur. L. Columbia Journal of European LawColum. J. Transnat’l L. Columbia Journal of Transnational LawColum. L. Rev. Columbia Law ReviewComp. Law. Company LawyerComp. L. L. & Pol’y J. Comparative Labor Law and Policy JournalConn. J. Int’l L. Connecticut Journal of International LawCornell Int’l L.J. Cornell International Law JournalCornell L. Rev. Cornell Law ReviewCSRC China Securities Regulatory Commission

DB Der BetriebDC Cir. United States Court of Appeals for the

District of ColumbiaDel. Ch. Delaware Court of ChanceryDel. J. Corp. L. Delaware Journal of Corporate LawDel. Supr. Delaware Supreme CourtDelGCL Delaware General Corporation LawDStR Deutsches SteuerrechtDSW Deutsche Schutzvereinigung fur

Wertpapierbesitz e.V.

EBLR European Business Law ReviewEBOR European Business Organization Law

ReviewEC European Community; Treaty

establishing the European CommunityECFR European Company and Financial Law

ReviewECJ European Court of JusticeECR European Court ReportsEEC European Economic CommunityELJ European Law JournalE.L. Rev. European Law ReviewEU European UnionEurop. Econ. Rev. European Economic ReviewEurop. J. Law & Econ. European Journal of Law and EconomicsEuZW Europaische Zeitschrift fur Wirtschaftsrecht






list of abbreviations xiii

EWS Europaisches Wirtschafts- und Steuerrecht

FASB Financial Accounting Standards Board(USA)

Ford. Int. L.J. Fordham International Law JournalFrCCom Code de Commerce (France)FrCG-Principles Principes de gouvernement d’entreprise

resultant de la consolidation des rapportsconjoints de l’AFEP et du MEDEF, 2003

FrCMon Code monetaire et financier (France)FrDecret Decret No. 67-236 sur les societes

commerciales (France)FrRGAMF Reglement general de l’Autorite des

marches financiers (AMF) (France)FSA Financial Services Authority

Ga. L. Rev. Georgia Law ReviewGATS General Agreement on Trade in ServicesGeo. L.J. Georgetown Law JournalGerAktG German Law on Joint-Stock Companies

(Aktiengesetz)GerBGB German Civil Code (Burgerliches

Gesetzbuch)GerBorsG German Stock Exchange Act

(Borsengesetz)GerBorsZulV German Stock Exchange Admission

Regulation(Borsenzulassungsverordnung)

GerCGK German Corporate Governance Code(Deutscher Corporate GovernanceKodex) (English version available atwww.corporate-governance-code.de/index-e.html)

GerFGG German Ex-Parte Jurisdiction Act (Gesetzuber die freiwillige Gerichtsbarkeit)

GerGmbHG German Law on Private LiabilityCompanies (Gesetz betreffend dieGesellschaft mit beschrankter Haftung)

GerHGB German Commercial Code(Handelsgesetzbuch)






xiv list of abbreviations

GerStGB German Criminal Code(Strafgesetzbuch)

GerUmwG German Transformation Act(Umwandlungsgesetz)

GerWpHG German Securities Trading Act(Wertpapierhandelsgesetz)

GerWpUG German Takeover Act(Wertpapiererwerbs- undUbernahmegesetz)

GerZPO German Code of Civil Procedure(Zivilprozessordnung)

Harv. Bus. Rev. Harvard Business ReviewHarv. Int’l L.J. Harvard International Law JournalHarv. J. on Legis. Harvard Journal on LegislationHarv. L. Rev. Harvard Law Review

IAS International Accounting StandardIASB International Accounting Standards

BoardIBL International Business LawyerICCLJ International and Comparative Corporate

Law JournalICCLR International Company and Commercial

Law ReviewICLQ International and Comparative Law

QuarterlyIFLR International Financial Law ReviewIFRS International Financial Reporting

StandardsInt. L. The International LawyerIMF International Monetary FundInt. J. Bus. International Journal of BusinessInt’l Rev. L. & Econ. International Review of Law and

EconomicsIOSCO International Organization of Securities

Commissions

JapCA Japanese Corporation Act (kaisha ho),Law No. 86/2005






list of abbreviations xv

JapCC Japanese Commercial Code (Shoho), LawNo. 48/1899

JapCCExcA Japanese law for special exceptions to theCommercial Code concerning audit, etc.of joint stock companies (Kabushikigaisha no kans to ni kansuru shoho notokurei ni kansuru horitsu), Law No.22/1974

JapCG-Principles Tokyo Stock Exchange, Principles ofCorporate Governance for ListedCompanies 2004.

JapSEA Japanese Securities and Exchange Act(Shoken torihikoho), Law No. 25/1948

JBL Journal of Business LawJ. Corp. L. Journal of Corporation LawJCL Journal of Comparative LawJCLS Journal of Corporate Law StudiesJCMS Journal of Common Market StudiesJCP Juris Classeur PeriodiqueJ. Econ. Manage. Strategy Journal of Economics and Management

StrategyJ. Empirical Legal Stud. Journal of Empirical Legal StudiesJ. Finance Journal of FinanceJ. Finan. Econ. Journal of Financial EconomicsJJS Journal of Japanese StudiesJ. L. & Econ. Journal of Law and EconomicsJ. L. Econ. & Org. Journal of Law, Economics and

OrganizationJ. Legal Stud. Journal of Legal StudiesJ. Polit. Economy Journal of Political EconomyJZ Juristenzeitung

Law & Pol’y Int’l Bus. Law and Policy in International BusinessLaw & Soc. Inquiry Law and Social InquiryLoy. LA Int’l & Comp. L.J. Loyola of Los Angeles International and

Comparative Law JournalLQR Law Quarterly ReviewLSE London Stock ExchangeMBCA Model Business Corporation Act (USA)Melbourne U. L. Rev. Melbourne University Law Review






xvi list of abbreviations

Mich. L. Rev. Michigan Law ReviewMinn. J. Global Trade Minnesota Journal of Global TradeMJ Maastricht Journal of European and

Comparative LawMLR Modern Law Review

NAFTA North American Free Trade AgreementNC J. Int’l & Com. Reg. North Carolina Journal of International

Law and Commercial RegulationNJW Neue Juristische WochenschriftNo(s). Number(s)Nw. J. Int’l L. & Bus. Northwestern Journal of International Law

and BusinessNw. U. L. Rev. Northwestern University Law ReviewNYBCL New York Business Corporation LawNY Int’l L. Rev. New York International Law ReviewNYL Sch. J. Int’l & New York Law School Journal ofComp. L. International and Comparative LawNYSE New York Stock ExchangeNYSE Manual Listed Company Manual of the New York

Stock ExchangeNYU L. Rev. New York University Law ReviewNZG Neue Zeitschrift fur Gesellschaftsrecht

OECD Organization for Economic Co-operationand Development

OECD-Principles OECD Principles of CorporateGovernance (available atwww.oecd.org/dataoecd/32/18/31557724.pdf)

OJLS Oxford Journal of Legal StudiesPenn St Int’l L. Rev. Penn State International Law ReviewQJ Econ. Quarterly Journal of EconomicsRabelsZ Rabels Zeitschrift fur auslandisches und

internationales PrivatrechtRev.int.dr.comp. Revue internationale du droit compareRev. Int. Polit. Economy Review of International Political EconomyRev.soc. Revue des societesRG Supreme Court of the German Reich

(Reichsgericht)






list of abbreviations xvii

RGZ Decisions of the Supreme Court of theGerman Reich

RIW Recht der internationalen Wirtschaft

s. (ss.) section(s), sentence(s)S. Cal. L. Rev. Southern California Law ReviewSarbanes–Oxley Act 2002 Sarbanes–Oxley Act (Public Company

Accounting Reform and InvestorProtection Act) (USA) of 30 July 2002

SE Societas Europaea (European Company)SE-Reg Council Regulation (EC) No. 2157/2001

of 8 October 2001 on the Statute for aEuropean Company (SE)

SEC Securities Exchange Commission (USA);Regulations and Rules of the SEC basedon Securities Exchange Act of 1934; 17CFR Parts 200–301

SI Statutory InstrumentSt John’s J. Legal Comment. Saint John’s Journal of Legal CommentarySt Louis U. L.J. Saint Louis University Law JournalStan. L. Rev. Stanford Law ReviewTransnat’l L. & Contemp. Transnational Law and Contemporary

Probs. ProblemsTransnat’l Law. Transnational LawyerTul. L. Rev. Tulane Law Review

U. Chi. L. Rev. University of Chicago Law ReviewU. Cin. L. Rev. University of Cincinnati Law ReviewUC Davis L. Rev. UC Davis Law ReviewUCLA Pac. Basin L.J. UCLA Pacific Basin Law JournalU. Pa. J. Int’l Econ. L. University of Pennsylvania Journal of

International Economic LawU. Pa. L. Rev. University of Pennsylvania Law ReviewU. Pitt. L. Rev. University of Pittsburgh Law ReviewUK-CA Companies Act 2006 (United Kingdom)UK-City Code City Code on Takeovers and Mergers of

the Panel on Takeovers and Mergers(United Kingdom)

UK-Combined Code Combined Code on CorporateGovernance (United Kingdom)






xviii list of abbreviations

UK-FSMA Financial Services and Markets Act 2000(United Kingdom)

UK-Listing Rules UK Listing RulesUK-Table A Table A of the Companies (Table A to F)

Regulations 1985 (United Kingdom)US-GAAP Generally Accepted Accounting Principles

(USA)US-SA Securities Act of 1933 (USA), ch. 38, 48

Stat. 7, codified at 15 USC secs. 77a–77mUS-SEA Securities Exchange Act of 1934 (USA),

ch. 404, 48 Stat. 881, codified at 15 USCsecs. 78a–78kk

US-UCC Uniform Commercial Code (USA)

Va. J. Int’l L. Virginia Journal of International LawVa. L. Rev. Virginia Law ReviewVill. L. Rev. Villanova Law Review

Wash. ULQ Washington University Law QuarterlyWLR Weekly Law ReportsWM Wertpapier-MitteilungenWTO World Trade Organization

Yale J. Int’l L. Yale Journal of International LawYale J. on Reg. Yale Journal on RegulationYale L.J. Yale Law Journal

ZEuP Zeitschrift fur Europaisches PrivatrechtZfRV Zeitschrift fur RechtsvergleichungZGR Zeitschrift fur Unternehmens- und

GesellschaftsrechtZHR Zeitschrift fur das gesamte Handels- und

WirtschaftsrechtZJapanR Zeitschrift fur Japanisches RechtZRP Zeitschrift fur RechtspolitikZVglRWiss Zeitschrift fur vergleichende

Rechtswissenschaft






TABLE OF CASES

European Union

Centros Ltd v. Erhervsog Selskabsstyrelsen, C-212/97 [1999] ECR I-1459 298, 300,

302

Commission v. Belgium, C-503/99 [2002] ECR I-4809 185

Commission v. French Republic, C-483/99 [2002] ECR I-4781 185

Commission v. Portugal, C-367/98 [2002] ECR I-4731 185

Hughes de Lasteyrie du Saillant v. Ministere de l’Economie, des Finances et de

l’Industrie, C-9/02 [2004] ECR I-2409 301

Kamer van Koophandel en Fabrieken voor Amsterdam v. Inspire Art Ltd, C-167/01

[2003] ECR I-10155 302, 303, 384

SEVIC Systems AG, C-411/03 [2005] ECR I-10805 269, 301

The Queen v. Daily Mail and General Trust plc, C-81/87 [1988] ECR I-5483 302

Uberseering BV v. Nordic Construction Company Baumanagement GmbH (NCC),

C-275/17 [2002] ECR I-9919 301, 302

Waltraud Tomberger v. Gebruder von der Wettern GmbH, C-234/94 [1996] ECR

I-3133 132

United Kingdom

Adams v. Cape Industries plc [1990] Ch 433 (Court of Appeal) 70

Alexander v. Automatic Telephone Co. [1990] 2 Ch 56 (Court of Appeal) 176

Brady v. Brady [1988] BCLC 20 (Court of Appeal) 178, 179

Bushell v. Faith [1970] AC 1099 (House of Lords) 114

Carruth v. Imperial Chemical Industries Ltd [1937] AC 707 (House of Lords) 199

City Equitable Fire Insurance Co., Re [1925] 1 Ch 407 (Court of Appeal) 192

Creasey v. Breachwood Motors Ltd [1993] BCLC 480 (Queen’s Bench) 70

DHN Food Distributors Ltd v. Tower Hamlets LBC [1976] 1 WLR 852 (Court of

Appeal) 70

Ebrahimi v. Westbourne Galleries Ltd [1972] 2 All ER 492 (Chancery Division) 202

Edwards v. Halliwell [1950] 2 All ER 1064 (Court of Appeal) 220

Foss v. Harbottle (1843) 2 Hare 461 (House of Lords) 213

Isle of Wight Ry v. Tahourdin (1883) 25 ChD 320 (Court of Appeal) 152

xix






xx table of cases

Normandy v. Ind, Coope & Co. [1908] 1 Ch 84 (Chancery Division) 99

Re a Company (No. 00709 of 1992) [1999] 1 WLR 1092 (O’Neill v. Phillips) (House of

Lords) 35, 207

Salomon v. Salomon & Co. [1897] AC 22 (House of Lords) 70

Smith & Fawcett Ltd, Re [1942] Ch 304 (Court of Appeal) 72, 192

Wall v. London & Northern Assets Corporation Ltd [1898] 2 Ch 469 (Court of Appeal)

110

Wallersteiner v. Moir (No. 2) [1975] 1 All ER 849 (Court of Appeal) 214

Weller (Sam) & Sons Ltd, Re [1990] BCLC 80 (Chancery Division) 74

West Mercia Safetywear Ltd v. Dodd [1988] BCLC 250 (Court of Appeal) 179

Yukong Line Ltd v. Rendsburg Investment Corporation [1998] 1 WLR 294 (Queen’s

Bench) 70

United States

A. P. Smith Mfg Co. v. Barlow, 98 A 2d 581 (New Jersey 1953) 179

Allied Chemical & Dye Corp. v. Steel & Tube Co. of America, 14 Del. Ch. 1, 120 A 486

(1923) 202

Aronson v. Lewis, 473 A 2d 805 (Del. 1984) 213

Auerbach v. Bennett, 47 NY 2d 619; 393 NW 2d 994; 419 NYS 2d 920 (1979) (NY

Court of Appeals) 213

Baatz v. Arrow Bar, 426 NW 2d 298 (South Dakota 1990) 70

Business Roundtable v. SEC, 905 F 2d 406 (DC Cir. 1990) 114

Dodge v. Ford Motor Co., 170 NW 668 (Michigan 1919) 179

Edgar v. MITE, 487 US 624 (1982) (US Supreme Court) 184

Eshleman v. Keenan, 22 Del. Ch. 82; 194 A 40 (1937); aff’d 23 Del. Ch. 234; 2 A 2d 904

(1938) 72

Fleigler v. Lawrence, 361 A 2d 218 (Del. 1976) 200

Foster v. Florida, 537 US 990 (US Supreme Court 2002) 386

Gimbal v. Signal Companies, 316 A 2d 599 (Del. Ch.); aff’d in part 316 A 2d 619 (Del.

1974) 166

Harris v. Carter, 582 A 2d 222 (Del. Ch. 1990) 206

Hartford Accident & Indemnity Co. v. W. S. Dickey Clay Mfg Co., 26 Del. Ch. 16; 21 A

2d 178 (1941), aff’d 26 Del. Ch. 411; 24 A 2d 315 (1942) 202

Havlicek v. Coast-to-Coast Analytical Services Inc., 46 Cal. Rptr 2d 696; 39 Cal. App.

4th 1844 (1995) 320

Hoschett v. TSI International Software Ltd, 683 A 2d 43 (Del. Ch. 1996) 62

Inhabitants of Waldoborough v. Knox and Lincoln R. R., 24 A 942 (Maine 1892) 169

Kahn v. Lynch Communication Systems Inc., 638 A 2d 1110 (Del. 1994); 669 A 2d 79

(Del. 1995) 170

Kinney Shoe Corp. v. Polan, 939 F 2d 209 (4th Cir. 1991) 70

Lawrence v. Texas, 123 S Ct 2472 (US Supreme Court 2003) 386






table of cases xxi

Laya v. Erin Homes Inc., 352 SE 2d 93 (West Virginia 1986) 70

Liggett v. Lee, 288 US 517 (US Supreme Court 1933) 298

North American Asbestos Corp. v. Superior Court, 225 Cal. Rptr 877; 180 Cal. App. 3d

902 (1986) 320

Paramount Communications Inc. v. QVC Network Inc., 637 A 2d 34 (Del. Ch. 1994)

184

Paul v. Virginia, 75 US 168 (US Supreme Court 1868) 299

Providence & Worcester Co. v. Baker, 378 A 2d 121 (Del. 1977) 114

Revlon Inc. v. MacAndrews & Forbes Holdings Inc., 506 A 2d 173 (Del. Supr 1986)

184

Sea-Land Corp. Shareholders Litigation, Re, No. 8453, 1987 WL 11283 (Del. Ch. 1987)

206

Sea-Land Services v. Pepper Source, 941 F 2d 519 (7th Cir. 1991) 70

Shamrock Assocs. v. Texas Am. Energy Corp., 517 A 2d 658 (Del. Ch. 1986) 143

Sinclair Oil Corp. v. Levien, 280 A 2d 717 (Del. 1971) 72, 192

Smith v. Van Gorkum, 488 A 2d 858 (Del. Supr, 1985) 191

State ex rel. Cochran v. Penn-Beaver Oil Co., 34 Del. 81, 143 A. 257 (1926) 124

State ex rel. Healy v. Superior Oil Corp., 40 Del. 460; 13 A 2d 453 (1940) 124

Stoud v. Grace, 606 A 2d 75 (Del. Supr 1992) 103

Thorpe v. CERBCO Inc., 676 A 2d 436 (Del. 1996) 206

Treves v. Menzies, 37 Del. Ch. 330; 142 A 2d 520 (1958) 72

Unocal Corp. v. Mesa Petroleum Co., 493 A 2d 946 (Del. Supr 1985) 184

Valtz v. Penta Invest. Corp., 188 Cal. Rptr 922l 139 Cal. App. 3d 803 (1983) 320

Walkovszky v. Carlton, 276 NYS 2d 585 (2nd Cir. 1966) 70

Weinberger v. UOP Inc., 457 A 2d 701 (Del. 1983) 202

Wilson v. Louisiana-Pacific Resources Inc., 187 Cal. Rptr 852; 138 Cal. App. 3d 216

(1983) 320

Zapata Corp. v. Maldonado, 430 A 2d 779 (Del. 1981) 213

Germany

BGH, BGHZ 3, 90 158

BGH, BGHZ 8, 348 158

BGH, BGHZ 10, 187 158

BGH, BGHZ 20, 4 70

BGH, BGHZ 48, 163 55

BGH, BGHZ 54, 222 70

BGH, BGHZ 68, 312 70

BGH, BGHZ 70, 122 87

BGH, BGHZ 71, 40 204

BGH, BGHZ 76, 352 204

BGH, BGHZ 83, 122 (Holzmuller) 35, 166






xxii table of cases

BGH, BGHZ 83, 319 204

BGH, BGHZ 99, 211 172

BGH, BGHZ 103, 184 (Linotype) 204

BGH, BGHZ 107, 296 219

BGH, BGHZ 114, 127 158

BGH, BGHZ 122, 123 70

BGH, BGHZ 125, 239 (Deutsche Bank) 204

BGH, BGHZ 129, 136 (Girmes) 204

BGH, BGHZ 132, 278 363

BGH, BGHZ 135, 244 (ARAG/Garmenbeck) 193, 215

BGH, BGHZ 136, 133 (Siemens/Nold) 49, 204

BGH, BGHZ 146, 179 (MEZ) 122, 219

BGH, BGHZ 153, 57 (Macrotron) 164, 204, 205, 207, 219

BGH, BGHZ 159, 30 (Gelatine) 35, 167

BGH, BGHZ 160, 149 (Infomatec) 197

BGH, NJW 1983, 1910 55

BGH, NJW 1992, 569 219

BGH, NJW 1999, 3197 204

BGH, NJW 2001, 1428 (Aqua-Butzke) 122, 219

BGH, WM 1987, 174 80

BGH, ZIP 1994, 867 70

BGH, ZIP 2005, 2207 (Mangusta/Commerzbank II) 204

BVerfG, BVerfGE 13, 331 70

BVerfG, BVerfGE 100, 289 209

BVerfG, NJW 2001, 279 (Moto Meter) 209, 219

RG, RGZ 68, 235 (Hibernia) 201

RG, RGZ 133, 90 55

ROHG, ROHG XI, 118 192

Other countries

Cour de Cassation, Chambre commerciale et financiere, JCP 1961 II, 69087 (Piquard)

(France) 203

Cour de Cassation, Rev.soc. 1998, 337 (France) 209

Gambotto v. WCP Ltd (1995) 127 ALR 417 (High Court of Australia) 61, 209

Howard Smith Ltd v. Ampol Petroleum Ltd [1974] AC 821 (Privy Council) 152, 192

Lee v. Lee’s Air Farming Ltd [1961] AC 12 (Privy Council) 70






TABLE OF LEGISLATION

OECD

OECD Principles of Corporate Governance 2004 32

Foreword 241

Preamble 38

No. II. A.3 135

No. II.B.1 162

No. II.B.2 163

No. II.B.3 165

No. II. C.no.2 135

No. II. C.3 160

No. II.E.2 182

No. II. F 119

No. II.G 139

No. III. pr. 211

No. III. A 203

No. III. A.1 66

No. IV. A 180, 227

European Union

Commission Recommendation of 12 December 2004 fostering an appropriate regime

for the remuneration of directors of listed companies, 2004/913/EC 33, 160, 189

Commission Recommendation of 15 February 2005 on the role of non-executive or

supervisory directors of listed companies and on the committees of the (supervisory)

board, 2005/162/EC 33, 195

Directive 68/151/EEC of 9 March 1968 on co-ordination 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 58 of the Treaty,

with a view to making such safeguards equivalent throughout the Community (First

Directive) 33, 125

xxiii






xxiv table of legislation

Directive 69/335/EEC of 17 July 1969 concerning indirect taxes on the raising of

capital 321

Directive 77/91/EEC of 13 December 1976 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 58 of the Treaty,

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

(Second Directive) 33

Art. 1(1) 10

Art. 2 70, 77

Art. 6(1) 315

Art. 19 85, 163

Art. 22(1) 200

Art. 24a 200

Arts. 25 et seq. 163

Art. 25(2) 163

Art. 25(3) 66

Art. 29 202

Art. 29(4)(s.3) 99


Art. 39 86

Art. 42 203

Directive 78/855/EEC of 9 October 1978 based on Article 54(3)(g) of the Treaty

concerning mergers of public limited liability companies (Third Directive)

Art. 7 164, 170

Art. 8 165


Art. 28 207

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 Directive) (as amended) 33,

130

Art. 2(3) 131

Art. 43(7b) 200

Art. 46(1) 177

Art. 46a 127

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 Directive)

Art. 5 164






table of legislation xxv

Directive 89/667/EEC of 21 December 1989 on single-member private limited-liability

companies (Twelfth Directive) 70

Directive 90/434/EEC of 23 July 1990 on the common system of taxation applicable to

mergers, divisions, transfers of assets and exchanges of shares concerning companies

of different Member States 301

Directive 2001/34/EC of 28 May 2001 on the admission of securities to official stock

exchange listing and on information to be published on those securities

Art. 46 81

Directive 2001/65/EC of 27 September 2001 amending Directives 78/660/EEC,

83/349/EEC and 86/635/EEC as regards the valuation rules for the annual and

consolidated accounts of certain types of companies as well as of banks and other

financial institutions 132

Directive 2003/6/EC of 28 January 2003 on insider dealing and market manipulation

(Market Abuse Directive)

Arts. 2–4 196

Art. 5 129

Art. 6 127

Art. 9 85

Directive 2003/41/EC of 3 June 2003 on the activities and supervision of institutions

for occupational retirement provision 290

Directive 2003/51/EC of the 18 June 2003 amending Directives 78/660/EEC,

83/349/EEC, 86/635/EEC and 91/674/EEC on the annual and consolidated accounts of

certain types of companies, banks and other financial institutions and insurance

undertakings 132, 177

Directive 2003/58/EC of 15 July 2003 amending Council Directive 68/151/EEC, as

regards disclosure requirements in respect of certain types of companies 33

Directive 2003/71/EC 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) 275

Directive 2003/124/EC of 22 December 2003 implementing Directive 2003/6/EC of the

European Parliament and of the Council as regards the definition and public

disclosure of inside information and the definition of market manipulation

Art. 2(1)(s.3) 128

Directive 2004/25/EC of 21 April 2004 on takeover bids (Takeover Directive)

Art. 5 205

Art. 6 127, 187






xxvi table of legislation

Art. 9 184

Art. 10 127, 187

Art. 11 184

Art. 12 184

Art. 15 209

Art. 16 205

Directive 2004/39/EC 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

Arts. 27–28 82

Directive 2004/109/EC of 15 December 2004 on the harmonisation 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)

Art. 4 127

Art. 5 127

Art. 6 127

Art. 9 145, 146

Art. 10 54, 146

Art. 12(1) 146

Art. 12(6) 146

Art. 17 33, 203, 243

Arts. 21–22 146

Directive 2005/19/EC of 17 February 2005 amending Directive 90/434/EEC 1990 on

the common system of taxation applicable to mergers, divisions, transfers of assets and

exchanges of shares concerning companies of different Member States 301

Directive 2005/56/EC of 26 October 2005 on cross-border mergers of limited liability

companies 269, 301

Directive 2006/43/EC of 17 May 2006 on statutory audits of annual accounts and

consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and

repealing Council Directive 84/253/EEC

Arts. 22–24 134

Art. 37 156


Directive 2006/46/EC of 14 June 2006 amending Council Directives 78/660/EEC on

the annual accounts of certain types of companies, 83/349/EEC on consolidated

accounts, 86/635/EEC on the annual accounts and consolidated accounts of banks and






table of legislation xxvii

other financial institutions and 91/674/EEC on the annual accounts and consolidated

accounts of insurance undertakings 127, 200

Directive 2006/68/EC of 6 September 2006 amending Council Directive 77/91/EEC as

regards the formation of public limited liability companies and the maintenance and

alteration of their capital 33, 85

Directive 2007/36/EC of 11 July 2007 on the exercise of certain rights of shareholders

in listed companies 33, 243, 338

Art. 4 203

Art. 5 97

Art. 6 94

Art. 7 341

Art. 9 123

Art. 12 106

Regulation (EC) No 1606/2002 of 19 July 2002 on the application of international

accounting standards

Art. 4 132

Art. 5 132

Regulation (EC) 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) 275

Annex III 7.3 and V 27.14 80

Regulation (EC) No. 2157/2001 of 8. October 2001 on the Statute for a European

Company (SE) (SE-Reg) 269

Art. 2 302

Art. 7 302

Art. 8 302

Art. 9(1) 49

Art. 38 49

Art. 39(1)(s.1) 153

Art. 39(2) 156

Art. 43(1) 153

Art. 53 49

Art. 54 91

Art. 55 93

Art. 60(1) 66

Annex I a 10






xxviii table of legislation

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 85

Treaty establishing the European Community (EC)

Art. 5 33

United Kingdom

Civil Procedure Rules

r. 19.9(7) 214

UK-CA = Companies Act 2006

s. 4(2) 11

s. 7 70

s. 8 162

s. 18 162

s. 21 162

s. 29 55

s. 30 55

s. 112 15

s. 113 139

s. 116 139

s. 126 15

s. 136 200

s. 146 15, 143

s. 153 15, 143

s. 162(3) 124

s. 168 158

s. 168(5) 158

ss. 170 et seq. 170, 192

s. 172(1) 178

s. 177 191

s. 182 191

s. 188 158

s. 190 167, 191

s. 229 124

s. 232 191

ss. 234 et seq. 191

s. 238 124

s. 239 170

ss. 260 et seq. 213






table of legislation xxix

s. 263 213

s. 283 170

ss. 288 et seq. 91

s. 302 92

s. 303(3) 93

s. 305 93

s. 306 93

s. 307 98

s. 307(2) 97

s. 310 96

s. 314(2) 94

s. 316 95

s. 317 95

s. 318 170

s. 321 113

ss. 324 et seq. 104

s. 324 104, 110

s. 326 104

s. 328 104

s. 329 104

s. 333 344

s. 336 91

ss. 336 et seq. 12

s. 338(3) 94

s. 340 95

ss. 341 et seq. 12

s. 358 124

ss. 380 et seq. 130

s. 417(5) 179

ss. 423 et seq. 100, 127

s. 439 160

s. 489(3) 156

s. 527 123

s. 544 80

s. 551 163

s. 561 202

s. 617(2) 163

s. 630 66

ss. 658 et seq. 85

s. 684 86

s. 755 12

s. 768 137






xxx table of legislation

s. 793 143

s. 795 143

s. 797 143

s. 830 74

s. 916 165

s. 943 183

s. 968 183

s. 979 209

s. 983 205

s. 994 35, 74, 192, 202, 213

s. 996(2) 207, 213

s. 1157 192

UK-CA 1985 = Companies Act 1985

s. 9 162

s. 17 162

s. 367 92

s. 372 104

s. 376 95

s. 377 95

s. 381A 91

UK-City Code = City Code on Takeovers and Mergers of the Panel on Takeovers and

Mergers

Principles 2–5 187

Principle 2 127

Principle 3 183

Rule 2.5 127, 187

Rule 9.1 205

Rule 21 183

Rules 24.1 et seq. 127

UK-Combined Code = Combined Code on Corporate Governance

Preamble 57

s. A.7.1 157

s. B.1 188

s. B.2.4 160

s. D.2 110

s. E.3 117

UK-FSMA = Financial Services and Markets Act

s. 2 40






table of legislation xxxi

s. 40 40

s. 109 196

UK-Listing Rules

§ 9.26 104

§ 9.3.6 104

§ 9.4.1 160

§ 9.9 127

Ch. 10 151, 165

Ch. 11 151

§ 11.1.7 167, 199

Ch. 13 100

§§ 13.28, 13.29 104

UK-Table A = Companies Table A Regulation 1985

Art. 2 66

Art. 3 66

Art. 42 112


Art. 60 104

Art. 70 152

Art. 73 157

Art. 77 100

Art. 78 156

Art. 102 72

United States

CalGCL = California General Corporation Law

§ 301.5 172

§ 708 172

§ 2115 299, 320

DelGCL = Delaware General Corporation Law

§ 102(b) 171, 191, 202

§ 109(a) 162

§ 141(a) 153

§ 141(d) 157

§ 141(h) 159

§ 141(k) 158, 172

§ 144 191

§ 151(a) 114






Documents

CONVERGENCE IN SHAREHOLDER LAW - Assetsassets.cambridge.org/97805218/76759/frontmatter/... · 2007. 12. 7. · 1. Dimensions of convergence in shareholder law 7 I. The spatial dimension: