The state of Lower Saxony, Volkswagen ’s second biggest shareholder, said on Wednesday that it plans to block a move to do away with its right to block any major decisions at the automaker. Porsche , VW’s largest shareholder, wants to change the rule that requires 80 percent plus one of VW’s shareholders to approve any “significant decisions.”
As it stands, Lower Saxony owns a 20.1 percent share in VW, enough to override any decision requiring an 80 percent approval. Porsche hopes to get the percentage down to 75 percent, which is more in line with German securities laws.
According to The Detroit News, Porsche currently holds a 31 percent stake in VW, but put the wheels in motion to acquire a majority stake in the German automaker in March.
Late last year, the European Court of Justice revoked the so called “VW Law“, which capped a shareholder’s vote to just 20 percent, no matter the holder’s invested interest. VW Law was enacted in the 1950s as a way to prevent a hostile takeover.
