Appraising the New EU Appraisal Regime

Abstract

In 2019 the European Union adopted the Mobility Directive, which improved the rules governing cross-border mergers and introduced harmonized rules for cross-border conversions and cross-border divisions. Most notably, the Directive introduced a harmonized regime for the exercise of appraisal rights in case of cross-border mergers. The new rules, which significantly strengthen minority shareholder protection, are line with the EU’s goal of fostering capital markets. The present article will seek to analyse the new appraisal regime introduced by the Mobility Directive and offer an evaluation of the regime and its shortcomings.

Keywords: Appraisal rights, hedge funds, corporate governance, Mergers and