Greek Legislation on Strategic Investments; the Next Golden Share Case Before the European Court of Justice?

European Company Law (ECL), Vol. 6, No. 6, pp. 264-270, 2009

12 Pages Posted: 26 Jan 2010 Last revised: 6 Feb 2010

See all articles by Thomas Papadopoulos

Thomas Papadopoulos

Department of Law, University of Cyprus

Date Written: December 1, 2009

Abstract

In 2008, Greece introduced some very important provisions on investment in Greek strategic companies (Law 3631/2008).1 This legislation was adopted mainly for the purpose of defending certain privatized 2 state companies (called DEKO (Public Benefit State Companies)) in which the Greek Government still holds a stake. While Greece was willing to allow investors to buy significant percentages of shares, it was reluctant to allow such investors to increase their shareholding beyond certain levels and to thereby acquire control of these national ‘champions’. Therefore, it decided to adopt special provisions curtailing the possibility thereof. After a careful examination of the Greek legislation, the European Commission has decided that the restrictions constitute unjustified restrictions on the free movement of capital and the freedom of establishment. In accordance with the process of Articles 226–228 EC, the European Commission has sent Greece a formal request to eliminate the restrictions on investment in strategic companies introduced by Law 3631/2008.3

Keywords: Golden Shares, Greek legislation, strategic companies, EU Law, internal market, freedom of establishment, free movement of capital, Articles 43 and 56 EC Treaty

JEL Classification: K2, K22, K23, K10, K20

Suggested Citation

Papadopoulos, Thomas, Greek Legislation on Strategic Investments; the Next Golden Share Case Before the European Court of Justice? (December 1, 2009). European Company Law (ECL), Vol. 6, No. 6, pp. 264-270, 2009, Available at SSRN: https://ssrn.com/abstract=1541635

Thomas Papadopoulos (Contact Author)

Department of Law, University of Cyprus ( email )

P.O. Box 20537
Nicosia, 1678
Cyprus

HOME PAGE: http://ucy.ac.cy/dir/en/component/comprofiler/userprofile/tpapad05

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
227
Abstract Views
1,165
rank
149,119
PlumX Metrics