Corporate: Council of Ministers still talking about Takeover Bids Directive

United Kingdom

The Council of Ministers is still in discussion over the framework of the Thirteenth Directive on company law and takeover bids. The latest draft text confirms that the Directive will not prevent Member States from indicating judicial or other authorities to hear litigation and give judgement on instances of irregularities in takeover bids. Nor will it affect the rights of Member States to determine when a party has the right to launch a judicial action and it leaves national courts free to refuse to hear a case unless some elementary principle of justice has been violated.

The Council’s Legal Service has reviewed the new draft and found it compatible with EU law. It has also agreed the compatibility of the UK’s proposed amendment designed to leave the UK scope for maintaining its own national system.