Case C-41/15: Judgment of the Court (Grand Chamber) of 8 November 2016 (request for a preliminary ruling from the High Court — Ireland) — Gerard Dowling and Others v Minister for Finance (Regulation (EU) No 407/2010 — European Financial Stabilisation Mechanism — Implementing Decision 2011/77/EU — European Union financial assistance to Ireland — Recapitalisation of national banks — Company law — Second Directive 77/91/EEC — Articles 8, 25 and 29 — Recapitalisation of a bank by means of judicial direction order — Increase in share capital without general meeting decision and without the shares issued being offered on a pre-emptive basis to existing shareholders — Issue of new shares at a price lower than their nominal value)
Date: 2016-11-08
Institutions: Court of Justice
Subjects: EU aid, Ireland, capital increase, company law, financial aid, public limited company, ruling, shareholder








C_2017006EN.01001001.xml










9.1.2017   


EN


Official Journal of the European Union


C 6/10





Judgment of the Court (Grand Chamber) of 8 November 2016 (request for a preliminary ruling from the High Court — Ireland) — Gerard Dowling and Others v Minister for Finance
(Case C-41/15) (1)

((Regulation (EU) No 407/2010 - European Financial Stabilisation Mechanism - Implementing Decision 2011/77/EU - European Union financial assistance to Ireland - Recapitalisation of national banks - Company law - Second Directive 77/91/EEC - Articles 8, 25 and 29 - Recapitalisation of a bank by means of judicial direction order - Increase in share capital without general meeting decision and without the shares issued being offered on a pre-emptive basis to existing shareholders - Issue of new shares at a price lower than their nominal value))
(2017/C 006/11)
Language of the case: English

Referring court

High Court (Ireland)

Parties to the main proceedings


Applicants: Gerard Dowling, Padraig McManus, Piotr Skoczylas, Scotchstone Capital Fund Limited

Defendant: Minister for Finance

Intervening parties: Permanent TSB Group Holdings plc, formerly Irish Life and Permanent Group Holdings plc, Permanent TSB plc, formerly Irish Life and Permanent plc

Operative part of the judgment

Article 8(1) and Articles 25 and 29 of the Second Council 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 54 TFEU], 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, must be interpreted as not precluding a measure, such as the Direction Order at issue in the main proceedings, adopted in a situation where there is a serious disturbance of the economy and the financial system of a Member State threatening the financial stability of the European Union, the effect of that measure being to increase the share capital of a public limited liability company, without the agreement of the general meeting of that company, new shares being issued at a price lower than their nominal value and the existing shareholders being denied any pre-emptive subscription right.


(1)  OJ C 138, 27.4.2015