Detailed Instructions: In this task, you are provided with an article of the legal acts. Your task is to classify it into three categories (Regulation, Decision and Directive) based on its content: 1) Regulation is a binding legislative act that must be applied in its entirety on a set date across all the member states (European Union countries). 2) Decision is binding on those to whom it is addressed (e.g. an European Union country or an individual company) and is directly applicable. 3) Directive is a legislative act that sets out a goal that all must achieve. However, it is up to the individual countries to devise their own laws on how to reach these goals.
Problem:The following shall be inserted in Article 7 (1) of the said Directive:'(bb) the rate of capital duty may be reduced by 50 % or more where a capital company which is in the process of being formed or which is already in existence acquires shares representing at least 75 % of the issued share capital of another capital company. Where the said percentage is reached by means of two or more transactions, the reduced rate shall apply only to the transaction whereby this percentage is reached and to subsequent transactions.However, the amount of the duty which by virtue of this provision is not charged shall become due if the company which acquires the shares does not retain, for a period of five years from the date of the transaction qualifying for the reduced rate, at least 75 % of the share capital of that company and all the shares of the other company which it holds following that transaction, including shares acquired before the transaction and held at the time thereof. However, the reduced rate shall remain applicable if during the relevant period the shares in question are transferred in the course of a transaction qualifying for the reduced rate pursuant to the foregoing sub-subparagraph or to subparagraph (b) of this paragraph or on liquidation of the company which acquired the shares. (1)OJ No L 249, 3.10.1969, p. 25.This reduction shall be subject to the condition that: - the consideration for the shares acquired shall consist exclusively of the allocation of shares in the acquiring company, although the Member States may extend application of the reduction to cases where the consideration for the shares acquired consists of the allocation of shares in the acquiring company together with a payment in cash not exceeding 10 % of the nominal value of these shares,- both companies taking part in the transaction, the company acquiring the shares and the company whose shares are acquired, have their effective centre of management or their registered office within the territory of a Member State.' Member States shall ensure that the texts of the main provisions of internal law which they subsequently adopt in the field covered by this Directive are forwarded to the Commission. This Directive is addressed to the Member States.
Solution:
Directive