File #2641: "2019_Book_Cross-BorderMergers.pdf"
Text
1|Foreword|7
1|Preface|10
1|Acknowledgements|15
1|Contents|17
1|Editor and Contributors|20
1|Part I: Cross-Border Mergers: EU and Comparative Perspectives|23
2|Reviewing the Implementation of the Cross-Border Mergers Directive|24
3|1 Introduction|24
3|2 The Main Benefits of the CBMD|25
3|3 Article-by-Article Analysis of the CBMD: Difficulties, Disadvantages and Proposals for Possible Reforms|28
4|3.1 Introduction: Obstacles to Cross-Border Mergers and Various Drawbacks of the CBMD|28
4|3.2 Scope|28
4|3.3 Conditions Relating to Cross-Border Mergers: The Available Company Types|30
4|3.4 Cash Payment|30
4|3.5 Creditor Protection|31
4|3.6 Protection of Minority Shareholders|34
4|3.7 Various Problems Deriving from the Procedure, Which Must Be Followed, for the Completion of a Cross-Border Merger|36
4|3.8 National Competent Authorities, Pre-merger Certificate and Scrutiny of the Legality of the Cross-Border Merger|37
4|3.9 Registration|38
4|3.10 Consequences of Cross-Border Mergers and Simplified Formalities|39
3|4 Employee Participation|40
3|5 Spillover Effects on Other Areas Outside of the CBMD|42
3|6 Cross-Border Seat Transfers Through Cross-Border Mergers|43
3|7 The Amendments Already Adopted|45
3|8 Future Directions: The 2012 Company Law Action Plan|46
3|9 Proposal for Amendments to the CBMD|47
3|10 Proposal to Introduce the Compulsory Share Exchange|51
3|11 Conclusion|52
3|References|53
2|An Empirical Research on Cross-Border Mergers at EU Level|56
3|1 Introduction|56
3|2 Legal Framework|58
3|3 Methodology|58
4|3.1 General Methodology of the Project|58
4|3.2 Limitation of the Scope of the Chapter|59
4|3.3 Further Methodological Points As to This Report|59
3|4 Results|60
4|4.1 Cross-Border Mergers: General Overview|60
5|4.1.1 Number of Cross-Border Mergers Per Year|60
4|4.2 Cross-Border Mergers: CBMs Per Country (Aggregated)|61
5|4.2.1 Total Number of CBMs Per Member State|61
5|4.2.2 Acquiring Companies Per Country|62
5|4.2.3 Merging Companies Per Country|63
4|4.3 Cross-Border Mergers: Company Form of All Companies Involved in CBMs|64
4|4.4 Cross-Border Mergers: Field of Activity ACs|67
4|4.5 Cross-Border Mergers: Multi-Mergers|68
4|4.6 Cross-Border Mergers: Employee Numbers|68
3|5 Conclusion|71
3|References|71
2|Cross-Border Mergers and Reincorporations in the EU: An Essay on the Uncertain Features of Companies´ Mobility|73
3|1 On Legal Entities and the Law|73
3|2 Reincorporations in the EU|75
3|3 Cross-Border Mergers As Vehicles for Reincorporations|76
3|4 Are We Sure That We Mean the Same When We Talk of `Merger´?|80
3|5 Conclusions|82
3|References|83
2|Appraisal Rights in the US and the EU|85
3|1 Introduction|85
3|2 Mergers and Appraisal Rights in the US and the EU|87
4|2.1 The Legal Framework for Mergers in the US and the EU|87
4|2.2 Appraisal Rights in the US and the EU|89
3|3 The Rise of Appraisal Arbitrage|91
4|3.1 The Benefits and Perils of Appraisal Arbitrage|91
4|3.2 The Drivers of Appraisal Arbitrage|94
3|4 The Dismal State of Appraisal in the EU|96
3|5 Conclusion|98
3|References|98
2|Shareholders´ Derivative Suits Against Corporate Directors, Following Cross-Border Mergers: A Functioning Remedy Within the EU?|101
3|1 Introduction|101
3|2 The State of the Art: The CBMD, Art. 106 of Directive (EU) 2017/1132 and Derivative Actions|103
3|3 Cross-Border Mergers and Pending Derivative Litigation|106
4|3.1 General Considerations|106
4|3.2 The Impasse (?) Created by the Continuous Ownership Requirement|107
4|3.3 Conflict of Laws|110
4|3.4 Is It That Important to Allow Derivative Litigants to Continue Their Claim Post-merger?|112
3|4 Post-merger Derivative Actions|113
3|5 Conclusions and Some Thoughts on the Way Forward|115
3|References|118
1|Part II: Cross-Border Mergers in European Company Law: Analysis in the Context of Various Areas of Law|120
2|Disclosure of Inside Information in Cross-Border Mergers|121
3|1 Introduction|121
3|2 The Geltl Case|122
3|3 The Disclosure Obligations After MAR|124
3|4 National Case Law and Guidelines of National Authorities|128
4|4.1 Austrian Supreme Administrative Court (VwGH)|130
4|4.2 French Court of Appeal (CA Paris)|132
4|4.3 German Supreme Court (BGH) and Issuer Guideline of Capital Market Authority (Bafin)|133
4|4.4 Greek Supreme Administrative Court (Sigmaτ)|134
4|4.5 UK Financial Services and Markets Tribunal|135
3|5 Remarks on National Case Law|136
4|5.1 The Onefold Notion of Inside Information|137
4|5.2 The Objective of Inside Dealing Provisions and Information Overload|138
4|5.3 The Realistic Prospect (Reasonable Be Expected) Requirement|140
4|5.4 The Lack of Empirical Evidence|141
4|5.5 The Reasonable Investor as Key Notion to Define Inside Information|141
3|6 The Cross-Border Parameter|143
3|7 Conclusion|145
3|References|146
2|Cross-Border Mergers and Cross-Border Takeovers Compared|148
3|1 Cross-Border Reorganizations and the EU Internal Market|148
4|1.1 Cross-Border Mergers and Takeovers as Reorganization Tools|149
4|1.2 Firm Reorganizations in the EU Treaties from a Company Law Perspective|154
3|2 Mergers and Takeovers: Comparing the Legal Regimes|156
4|2.1 Agency Problems in Mergers and Takeovers|156
4|2.2 Board Involvement|158
4|2.3 Shareholder Information and Approval|162
5|2.3.1 Information Regimes for Cross-Border Mergers and Cross-Border Takeovers|162
5|2.3.2 Collective Decision-Making|165
6|Pressure to Tender|166
6|Free Riding|169
4|2.4 Voluntary and Forced Exit|169
3|3 Conclusions|173
3|References|174
2|The Relationship Between Article 4(1)(b) of the Cross-Border Merger Directive and the European Merger Regulation|176
3|1 Introduction|176
3|2 National Merger Rules on Public Interest and Article 4(1)(b) CBMD|178
3|3 The Role of the EUMR in Protecting Mergers Against Public Interest Oppositions|183
3|4 The Difference in Scope and The Limits of Protection|186
3|5 Conclusion|189
3|References|190
2|Unions´ Freedom to Establish and Provide Services|192
3|1 Introduction|192
3|2 Union Freedoms Under the Treaties?|194
4|2.1 The Background of Union Freedom: Viking, Laval and Pre-Emption|195
4|2.2 Service Provision|200
4|2.3 Establishment|202
3|3 Should Union Rights be Acknowledged?|204
4|3.1 Mistrust of Judges|204
4|3.2 Competition Law and Labour|204
4|3.3 Unions´ Socio-Political Functions|206
3|4 Conclusion|207
3|References|207
2|Tax Mergers Directive: Basic Conceptualisation|209
3|1 Introduction|209
3|2 Hidden Values and Capital Gains as Major Tax Issue in Mergers|210
4|2.1 Generation of Hidden Values and of Capital Gains|210
4|2.2 Inclusion of Capital Gains Caused by Mergers in Taxable Base?|212
3|3 World Income Principle and Dividends|215
4|3.1 Impact of the Unwritten World Income Principle: Business Profits|215
4|3.2 Distribution of Profits from One Company to Another|217
4|3.3 Interim Conclusion: Only Relocation of Company Seat Matters|218
3|4 Important Individual Aspects of the Directive|220
4|4.1 General Framework|220
4|4.2 Anti-Abuse: Phase I-No Cross-Border Mergers Directive|220
4|4.3 Anti-Abuse: Phase II-Tax Deferral|222
4|4.4 Anti-Abuse: Phase III-BEPS Programme?|223
3|5 Conclusions|224
3|References|224
2|Procedural Harmonisation in Cross-Border Mergers|225
3|1 Where Have We Gone So Far|225
3|2 The Lack of a Procedural Framework as a Source of Complications|226
4|2.1 Procedural Timetable|226
4|2.2 Service of Proceedings|227
4|2.3 National Rules in General|227
4|2.4 National Rules of a Procedural Nature in Relation to Accounting Practices|228
4|2.5 National Rules of a Procedural Nature in Relation to Creditor Protection|229
4|2.6 National Rules of a Procedural Nature in Relation to Minority Protection|231
4|2.7 National Rules of a Procedural Nature in Relation to Employee Protection|232
4|2.8 Filings|233
4|2.9 Collaboration Among Registries and the Need of a Central Authority in the EU|234
4|2.10 Modern Technology|234
3|3 The European Union Does Not Harmonise Procedure|235
3|4 Conclusion|236
3|References|237
1|Part III: National Experiences from the Implementation of the Cross-Border Mergers Directive in Some Member States|239
2|Experiences from the Implementation of the Cross-Border Mergers Directive in Austria|240
3|1 Introduction|240
3|2 Scope of Application|241
3|3 Outline of Cross-Border Merger Proceedings in Austria|242
4|3.1 Documentation|242
5|3.1.1 Common Draft Terms of the Cross-Border Merger (Verschmelzungsplan)|242
5|3.1.2 Management Report|243
5|3.1.3 Report of the Merger Auditor|244
5|3.1.4 Report of the Supervisory Board|245
5|3.1.5 Balance Sheet Requirements|246
4|3.2 Shareholders´ Approval|247
4|3.3 Court Proceedings and Effects of the Merger|248
5|3.3.1 Outbound Mergers|248
5|3.3.2 Inbound Mergers|249
5|3.3.3 Effects of the Merger|250
3|4 Selected Issues of Cross-Border Mergers in Austria|251
4|4.1 Creditor Protection|251
5|4.1.1 General Remarks|251
5|4.1.2 Pre-Merger Protection|251
5|4.1.3 Post-Merger Protection|253
4|4.2 Shareholder Protection|255
5|4.2.1 General Remarks|255
5|4.2.2 Exit and Cash Compensation|255
5|4.2.3 Examination of the Exchange Ratio|256
4|4.3 Employee Participation|257
3|5 Conclusion|258
3|References|258
2|Experiences from the Implementation of the Cross-Border Mergers Directive in Cyprus|260
3|1 Introduction|260
3|2 Implementation of the CBMD in Cyprus: A Critical Overview of the Most Important Provisions|261
4|2.1 Basic Definitions|261
4|2.2 Scope|262
4|2.3 Company Types and Applicable Law|263
4|2.4 Procedure|263
3|3 The Multi-Level Regulatory Model of the CBMD|266
3|4 The Multi-Level Regulatory Model in the Implementation of the CBMD in Cyprus: Decision-Making Process, Creditor Protection a...|269
4|4.1 Introduction|269
4|4.2 ``Arrangements and Reconstructions´´ in Cyprus Companies Law (Chapter 113)|270
4|4.3 Creditor Protection in Cross-Border Mergers and Schemes of Arrangement|272
4|4.4 Decision-Making Process|274
4|4.5 Protection of Minority Shareholders: Schemes of Arrangement and Other Legal Bases in Cyprus Companies Law (Chapter 113)|275
3|5 Cross-Border Mergers and Cyprus Case Law on Schemes of Arrangement|280
3|6 Gold-Plating of the Transposition of the CBMD into Cyprus Law|285
3|7 Concluding Remarks|287
3|References|288
2|Cross-Border Mergers: The Danish Experience|290
3|1 Introduction|290
3|2 State of the Law Prior to the 10th Company Law Directive|291
3|3 SEVIC and the Implementation of the 10th Company Law Directive in Danish Law|292
4|3.1 Background|294
4|3.2 Regulatory Strategy|294
4|3.3 Scope|296
4|3.4 Pre-merger Documents|297
4|3.5 Conditions Relating to Cross-Border Mergers|299
5|3.5.1 Protection of Creditor Interests|300
5|3.5.2 Approval by the General Meeting of a Cross-Border Merger|301
5|3.5.3 Protection of Minority Shareholder Interests|302
3|4 Transfer of the Seat|304
3|5 Concluding Remarks|306
3|References|307
2|Cross-Border Mergers in France|309
3|1 Introduction|309
3|2 Scope|311
4|2.1 Companies Concerned|311
4|2.2 Entities Excluded|311
4|2.3 Geographical Scope|312
4|2.4 Definition of the Term ``Merger´´|312
3|3 Protection of Public Interest and of Various Stakeholders|315
4|3.1 Opposition to a Merger on Public Interest Grounds|315
5|3.1.1 Possible Grounds of Opposition|315
5|3.1.2 Competition Law Regulatory Restrictions|315
5|3.1.3 Defense of ``Strategic´´ Industries|317
4|3.2 Stakeholder Protection|317
5|3.2.1 Creditor Protection|317
6|Ordinary Creditor Opposition|317
6|Bondsholder Protection|318
5|3.2.2 Minority Shareholder Protection|319
6|Information Right|319
6|Abuse of Majority|320
6|Shareholder Approval|320
6|Simplified Procedure|322
5|3.2.3 Employee Participation|323
6|Principle|323
6|Exceptions|324
3|4 Procedure|326
4|4.1 Procedure Before the Shareholder Approval|326
5|4.1.1 Common Draft Terms of Cross-Border Mergers|326
5|4.1.2 Management Report|327
5|4.1.3 Independent Report|327
4|4.2 Pre-merger Certificate and Scrutiny of the Legality of the Merger|328
5|4.2.1 Absence of Causes of Nullity|328
5|4.2.2 Pre-merger Certificate|329
5|4.2.3 Scrutiny of the Legality|330
4|4.3 Entry into Effect|330
5|4.3.1 Effective Date of the Merger|330
5|4.3.2 Tax and Accounting Effective Date|332
4|4.4 Registration|333
4|4.5 Consequences of the Cross-Border Merger|334
3|5 Tax Law Overview: Implication of the Euro Park Service Case|334
3|6 Towards a Cross-Border Mobility Directive|335
3|References|336
2|The Implementation of the Cross-Border Mergers Directive (2005/56/EC) in Germany: A Story of Insufficiencies and (Better) Alte...|339
3|1 Introduction|339
3|2 A Short History of the Law on Mergers in Germany|340
3|3 Implementation of the Cross-Border Mergers Directive in Germany|340
4|3.1 (Limited) Scope of Application|341
4|3.2 (Extensive) Protection of Minority Shareholders|342
5|3.2.1 Ex-ante Protection by Appraisal Right|342
5|3.2.2 Ex-post Protection by Limited Review of the Shareholder Resolution|343
5|3.2.3 Criticism and Call for Reform|344
4|3.3 (Improper) Rules on Creditor Protection|344
4|3.4 Employee Participation|345
4|3.5 The Limited Impact of the Codified Cross-Border Merger Law on Legal Practice|346
3|4 Application of Non-codified Cross-Border Transformation Law As Alternative Strategy|346
4|4.1 European Background|346
4|4.2 Cherry-Picking of the Applicable Law|347
4|4.3 Advantages and Disadvantages|348
3|5 Summary|348
3|Annex (English Translation of §§ 122a ff. German Transformation Act)|349
4|Chapter 10 (Cross-Border Merger of Companies Limited by Shares)|349
3|References|354
2|Experiences from the Implementation of the Cross-Border Mergers Directive in Greece|356
3|1 Introduction|356
4|1.1 Greek Legislation Implementing the CBMD|356
4|1.2 Infringement Proceedings|357
4|1.3 The Availability of Cross-Border Mergers in Greek Law Before the Adoption of the CBMD|358
4|1.4 Types of Company in Greek Law|359
3|2 The Multi-Level Regulatory Model of the CBMD|359
3|3 Implementation of the CBMD in Greece: A Critical Overview of the Most Important Provisions|361
4|3.1 Scope|361
4|3.2 The Definition of ``Merger´´|364
4|3.3 Cash Payment|365
4|3.4 Procedure|365
3|4 Protection of Minority Shareholders and Creditors in the Context of Cross-Border Mergers|371
3|5 Gold-Plating of the Transposition of the CBMD into Greek Law and Optional Provisions|377
3|6 Reincorporations and Cross-Border Mergers in Greek Law|381
3|7 Stakeholders´ Views and Cross-Border Mergers Activity|384
3|8 Concluding Remarks|386
3|References|388
2|The Implementation of the Cross-Border Mergers Directive in Italy: An Overview with a Critical Assessment of Dissenting Shareh...|391
3|1 Introduction|391
3|2 Scope of Application. Eligible Companies|393
3|3 Common Draft Terms. Management and Expert Reports. Cash Payment|394
3|4 Approval by the General Meeting|395
3|5 Pre-merger Certificate|397
3|6 The Deed of Merger|398
3|7 Scrutiny of the Legality of the Cross-Border Merger|399
3|8 Registration of the Cross-Border Merger. Date in Which the Merger Takes Effect|399
3|9 Validity of the Merger|400
3|10 Cross-Border Mergers Subject to Simplified Formalities|401
3|11 Protection of Creditors|402
3|12 Protection of Dissenting Members|403
4|12.1 Appraisal in Domestic Mergers|404
4|12.2 How Cross-Border Mergers May Harm Dissenting Members|405
4|12.3 Measures of Minority Members´ Protection in Merger Law|408
4|12.4 Is Additional Protection Justified?|409
3|References|410
2|The Implementation of the Cross-Border Mergers Directive in Luxembourg|412
3|1 Introduction and Context|412
4|1.1 Luxembourg´s Openness to Corporate Restructuring Schemes Including Cross-Border Mergers (CBM)|412
4|1.2 The Three Waves/Generations of CBM|413
4|1.3 The Elements Defining the Openness of Luxembourg´s Legislation Relating to CBM|414
3|2 Specifically Relating to the Implementation of the CBMD in Luxembourg|415
3|3 Beyond the CBMD: More Issues Relating to Companies´ Mobility Have to Be Addressed|417
3|4 Conclusion|418
3|References|419
3|Books and Book Chapters|419
3|Articles|419
3|Further Reading|419
2|Implementation of the Cross-Border Merger Directive in the Netherlands|421
3|1 Introduction|421
3|2 Scope|422
3|3 Merger Forms: Mother-Daughter Merger, Sister Merger and Triangular Merger|423
3|4 Procedure|425
3|5 Creditor Protection|426
3|6 Minority Protection|429
3|7 Employee Participation|431
3|References|433
2|Cross-Border Mergers: Experiences from Poland|435
3|1 Introduction|435
3|2 Legal Framework for Cross-Border Mergers in Poland|436
3|3 Cross-Border Merger Procedure|437
3|4 Data Analysis of Cross-Border Mergers with Polish Companies|444
4|4.1 Methodology|444
4|4.2 CBMs in Poland: Analysis and Presentation of Data|445
4|4.3 Final Notes|448
3|5 Summary and Conclusions|449
3|References|450
2|The Mutual Influence Between Cross-Border Merger and Common Merger Regimes in Spanish Law|452
3|1 The Regulatory Framework for Intra-Community Cross-Border Mergers Under Spanish Law|453
3|2 The Aim of Directive 2005/56/EC, on Cross-Border Mergers of Limited Liability Companies|456
3|3 Alternative Methods to Cross-Border Mergers: The Arrangement|457
3|4 The Concept of Intra-Community Cross-Border Mergers. An Objective Delimitation and, Above All, a Subjective One|458
3|5 The Nature of a Merger Process: Its Hybrid Character|461
3|6 Types of Intra-Community Cross-Border Mergers|462
3|7 Regime Applicable to the Intra-Community Cross-Border Mergers. The Continuous Reference to the General Merger Regime to Supp...|466
3|8 The Preparatory Phase of a Merger|467
4|8.1 Common Draft Terms of Merger: The Possibilities of Modifying Them in Spanish Merger Legislation|467
4|8.2 Publishing the Draft Terms of Merger|470
4|8.3 Reports from Management or Administrative Organs|471
4|8.4 Independent Expert´s Reports|473
4|8.5 Merger Balance|474
3|9 The Decision-Making Phase of the Merger|475
3|10 The Execution Phase of the Merger|476
4|10.1 Document Formalization in the Intra-Community Cross-Border Merger|476
4|10.2 Registration in the Execution Phase of a Merger and the Need to Resort to Conflict Rules|476
4|10.3 Issuing Pre-merger Certificates|477
4|10.4 International Registry Classification or the Scrutiny of the Legality of the Intra-Community Cross-Border Merger|478
4|10.5 Registration and Publication of the Intra-Community Cross-Border Merger|479
4|10.6 Nullity of the Intra-Community Cross-Border Merger|480
3|11 Redress Mechanisms|481
3|12 Conclusions|481
3|References|482
2|Cross-Border Mergers Directive and Its Impact in the UK|485
3|1 Introduction|485
3|2 Type of Companies, Mergers and Process of Cross-Border Mergers|488
4|2.1 Comparison of Third and Tenth Directives|488
4|2.2 Types of Companies|489
4|2.3 Types of Mergers|490
4|2.4 Process of Cross-Border Mergers|491
4|2.5 Employee Participation|493
3|3 Regulations and Facilitation of Cross-Border Merges|494
3|4 Schemes of Arrangement and Cross-Border Mergers|498
3|5 Popularity of Takeovers Versus Mergers|500
3|6 Challenges of Brexit to Cross-Border Mergers|507
3|7 Conclusion|509
3|References|510
1|Preface|10
1|Acknowledgements|15
1|Contents|17
1|Editor and Contributors|20
1|Part I: Cross-Border Mergers: EU and Comparative Perspectives|23
2|Reviewing the Implementation of the Cross-Border Mergers Directive|24
3|1 Introduction|24
3|2 The Main Benefits of the CBMD|25
3|3 Article-by-Article Analysis of the CBMD: Difficulties, Disadvantages and Proposals for Possible Reforms|28
4|3.1 Introduction: Obstacles to Cross-Border Mergers and Various Drawbacks of the CBMD|28
4|3.2 Scope|28
4|3.3 Conditions Relating to Cross-Border Mergers: The Available Company Types|30
4|3.4 Cash Payment|30
4|3.5 Creditor Protection|31
4|3.6 Protection of Minority Shareholders|34
4|3.7 Various Problems Deriving from the Procedure, Which Must Be Followed, for the Completion of a Cross-Border Merger|36
4|3.8 National Competent Authorities, Pre-merger Certificate and Scrutiny of the Legality of the Cross-Border Merger|37
4|3.9 Registration|38
4|3.10 Consequences of Cross-Border Mergers and Simplified Formalities|39
3|4 Employee Participation|40
3|5 Spillover Effects on Other Areas Outside of the CBMD|42
3|6 Cross-Border Seat Transfers Through Cross-Border Mergers|43
3|7 The Amendments Already Adopted|45
3|8 Future Directions: The 2012 Company Law Action Plan|46
3|9 Proposal for Amendments to the CBMD|47
3|10 Proposal to Introduce the Compulsory Share Exchange|51
3|11 Conclusion|52
3|References|53
2|An Empirical Research on Cross-Border Mergers at EU Level|56
3|1 Introduction|56
3|2 Legal Framework|58
3|3 Methodology|58
4|3.1 General Methodology of the Project|58
4|3.2 Limitation of the Scope of the Chapter|59
4|3.3 Further Methodological Points As to This Report|59
3|4 Results|60
4|4.1 Cross-Border Mergers: General Overview|60
5|4.1.1 Number of Cross-Border Mergers Per Year|60
4|4.2 Cross-Border Mergers: CBMs Per Country (Aggregated)|61
5|4.2.1 Total Number of CBMs Per Member State|61
5|4.2.2 Acquiring Companies Per Country|62
5|4.2.3 Merging Companies Per Country|63
4|4.3 Cross-Border Mergers: Company Form of All Companies Involved in CBMs|64
4|4.4 Cross-Border Mergers: Field of Activity ACs|67
4|4.5 Cross-Border Mergers: Multi-Mergers|68
4|4.6 Cross-Border Mergers: Employee Numbers|68
3|5 Conclusion|71
3|References|71
2|Cross-Border Mergers and Reincorporations in the EU: An Essay on the Uncertain Features of Companies´ Mobility|73
3|1 On Legal Entities and the Law|73
3|2 Reincorporations in the EU|75
3|3 Cross-Border Mergers As Vehicles for Reincorporations|76
3|4 Are We Sure That We Mean the Same When We Talk of `Merger´?|80
3|5 Conclusions|82
3|References|83
2|Appraisal Rights in the US and the EU|85
3|1 Introduction|85
3|2 Mergers and Appraisal Rights in the US and the EU|87
4|2.1 The Legal Framework for Mergers in the US and the EU|87
4|2.2 Appraisal Rights in the US and the EU|89
3|3 The Rise of Appraisal Arbitrage|91
4|3.1 The Benefits and Perils of Appraisal Arbitrage|91
4|3.2 The Drivers of Appraisal Arbitrage|94
3|4 The Dismal State of Appraisal in the EU|96
3|5 Conclusion|98
3|References|98
2|Shareholders´ Derivative Suits Against Corporate Directors, Following Cross-Border Mergers: A Functioning Remedy Within the EU?|101
3|1 Introduction|101
3|2 The State of the Art: The CBMD, Art. 106 of Directive (EU) 2017/1132 and Derivative Actions|103
3|3 Cross-Border Mergers and Pending Derivative Litigation|106
4|3.1 General Considerations|106
4|3.2 The Impasse (?) Created by the Continuous Ownership Requirement|107
4|3.3 Conflict of Laws|110
4|3.4 Is It That Important to Allow Derivative Litigants to Continue Their Claim Post-merger?|112
3|4 Post-merger Derivative Actions|113
3|5 Conclusions and Some Thoughts on the Way Forward|115
3|References|118
1|Part II: Cross-Border Mergers in European Company Law: Analysis in the Context of Various Areas of Law|120
2|Disclosure of Inside Information in Cross-Border Mergers|121
3|1 Introduction|121
3|2 The Geltl Case|122
3|3 The Disclosure Obligations After MAR|124
3|4 National Case Law and Guidelines of National Authorities|128
4|4.1 Austrian Supreme Administrative Court (VwGH)|130
4|4.2 French Court of Appeal (CA Paris)|132
4|4.3 German Supreme Court (BGH) and Issuer Guideline of Capital Market Authority (Bafin)|133
4|4.4 Greek Supreme Administrative Court (Sigmaτ)|134
4|4.5 UK Financial Services and Markets Tribunal|135
3|5 Remarks on National Case Law|136
4|5.1 The Onefold Notion of Inside Information|137
4|5.2 The Objective of Inside Dealing Provisions and Information Overload|138
4|5.3 The Realistic Prospect (Reasonable Be Expected) Requirement|140
4|5.4 The Lack of Empirical Evidence|141
4|5.5 The Reasonable Investor as Key Notion to Define Inside Information|141
3|6 The Cross-Border Parameter|143
3|7 Conclusion|145
3|References|146
2|Cross-Border Mergers and Cross-Border Takeovers Compared|148
3|1 Cross-Border Reorganizations and the EU Internal Market|148
4|1.1 Cross-Border Mergers and Takeovers as Reorganization Tools|149
4|1.2 Firm Reorganizations in the EU Treaties from a Company Law Perspective|154
3|2 Mergers and Takeovers: Comparing the Legal Regimes|156
4|2.1 Agency Problems in Mergers and Takeovers|156
4|2.2 Board Involvement|158
4|2.3 Shareholder Information and Approval|162
5|2.3.1 Information Regimes for Cross-Border Mergers and Cross-Border Takeovers|162
5|2.3.2 Collective Decision-Making|165
6|Pressure to Tender|166
6|Free Riding|169
4|2.4 Voluntary and Forced Exit|169
3|3 Conclusions|173
3|References|174
2|The Relationship Between Article 4(1)(b) of the Cross-Border Merger Directive and the European Merger Regulation|176
3|1 Introduction|176
3|2 National Merger Rules on Public Interest and Article 4(1)(b) CBMD|178
3|3 The Role of the EUMR in Protecting Mergers Against Public Interest Oppositions|183
3|4 The Difference in Scope and The Limits of Protection|186
3|5 Conclusion|189
3|References|190
2|Unions´ Freedom to Establish and Provide Services|192
3|1 Introduction|192
3|2 Union Freedoms Under the Treaties?|194
4|2.1 The Background of Union Freedom: Viking, Laval and Pre-Emption|195
4|2.2 Service Provision|200
4|2.3 Establishment|202
3|3 Should Union Rights be Acknowledged?|204
4|3.1 Mistrust of Judges|204
4|3.2 Competition Law and Labour|204
4|3.3 Unions´ Socio-Political Functions|206
3|4 Conclusion|207
3|References|207
2|Tax Mergers Directive: Basic Conceptualisation|209
3|1 Introduction|209
3|2 Hidden Values and Capital Gains as Major Tax Issue in Mergers|210
4|2.1 Generation of Hidden Values and of Capital Gains|210
4|2.2 Inclusion of Capital Gains Caused by Mergers in Taxable Base?|212
3|3 World Income Principle and Dividends|215
4|3.1 Impact of the Unwritten World Income Principle: Business Profits|215
4|3.2 Distribution of Profits from One Company to Another|217
4|3.3 Interim Conclusion: Only Relocation of Company Seat Matters|218
3|4 Important Individual Aspects of the Directive|220
4|4.1 General Framework|220
4|4.2 Anti-Abuse: Phase I-No Cross-Border Mergers Directive|220
4|4.3 Anti-Abuse: Phase II-Tax Deferral|222
4|4.4 Anti-Abuse: Phase III-BEPS Programme?|223
3|5 Conclusions|224
3|References|224
2|Procedural Harmonisation in Cross-Border Mergers|225
3|1 Where Have We Gone So Far|225
3|2 The Lack of a Procedural Framework as a Source of Complications|226
4|2.1 Procedural Timetable|226
4|2.2 Service of Proceedings|227
4|2.3 National Rules in General|227
4|2.4 National Rules of a Procedural Nature in Relation to Accounting Practices|228
4|2.5 National Rules of a Procedural Nature in Relation to Creditor Protection|229
4|2.6 National Rules of a Procedural Nature in Relation to Minority Protection|231
4|2.7 National Rules of a Procedural Nature in Relation to Employee Protection|232
4|2.8 Filings|233
4|2.9 Collaboration Among Registries and the Need of a Central Authority in the EU|234
4|2.10 Modern Technology|234
3|3 The European Union Does Not Harmonise Procedure|235
3|4 Conclusion|236
3|References|237
1|Part III: National Experiences from the Implementation of the Cross-Border Mergers Directive in Some Member States|239
2|Experiences from the Implementation of the Cross-Border Mergers Directive in Austria|240
3|1 Introduction|240
3|2 Scope of Application|241
3|3 Outline of Cross-Border Merger Proceedings in Austria|242
4|3.1 Documentation|242
5|3.1.1 Common Draft Terms of the Cross-Border Merger (Verschmelzungsplan)|242
5|3.1.2 Management Report|243
5|3.1.3 Report of the Merger Auditor|244
5|3.1.4 Report of the Supervisory Board|245
5|3.1.5 Balance Sheet Requirements|246
4|3.2 Shareholders´ Approval|247
4|3.3 Court Proceedings and Effects of the Merger|248
5|3.3.1 Outbound Mergers|248
5|3.3.2 Inbound Mergers|249
5|3.3.3 Effects of the Merger|250
3|4 Selected Issues of Cross-Border Mergers in Austria|251
4|4.1 Creditor Protection|251
5|4.1.1 General Remarks|251
5|4.1.2 Pre-Merger Protection|251
5|4.1.3 Post-Merger Protection|253
4|4.2 Shareholder Protection|255
5|4.2.1 General Remarks|255
5|4.2.2 Exit and Cash Compensation|255
5|4.2.3 Examination of the Exchange Ratio|256
4|4.3 Employee Participation|257
3|5 Conclusion|258
3|References|258
2|Experiences from the Implementation of the Cross-Border Mergers Directive in Cyprus|260
3|1 Introduction|260
3|2 Implementation of the CBMD in Cyprus: A Critical Overview of the Most Important Provisions|261
4|2.1 Basic Definitions|261
4|2.2 Scope|262
4|2.3 Company Types and Applicable Law|263
4|2.4 Procedure|263
3|3 The Multi-Level Regulatory Model of the CBMD|266
3|4 The Multi-Level Regulatory Model in the Implementation of the CBMD in Cyprus: Decision-Making Process, Creditor Protection a...|269
4|4.1 Introduction|269
4|4.2 ``Arrangements and Reconstructions´´ in Cyprus Companies Law (Chapter 113)|270
4|4.3 Creditor Protection in Cross-Border Mergers and Schemes of Arrangement|272
4|4.4 Decision-Making Process|274
4|4.5 Protection of Minority Shareholders: Schemes of Arrangement and Other Legal Bases in Cyprus Companies Law (Chapter 113)|275
3|5 Cross-Border Mergers and Cyprus Case Law on Schemes of Arrangement|280
3|6 Gold-Plating of the Transposition of the CBMD into Cyprus Law|285
3|7 Concluding Remarks|287
3|References|288
2|Cross-Border Mergers: The Danish Experience|290
3|1 Introduction|290
3|2 State of the Law Prior to the 10th Company Law Directive|291
3|3 SEVIC and the Implementation of the 10th Company Law Directive in Danish Law|292
4|3.1 Background|294
4|3.2 Regulatory Strategy|294
4|3.3 Scope|296
4|3.4 Pre-merger Documents|297
4|3.5 Conditions Relating to Cross-Border Mergers|299
5|3.5.1 Protection of Creditor Interests|300
5|3.5.2 Approval by the General Meeting of a Cross-Border Merger|301
5|3.5.3 Protection of Minority Shareholder Interests|302
3|4 Transfer of the Seat|304
3|5 Concluding Remarks|306
3|References|307
2|Cross-Border Mergers in France|309
3|1 Introduction|309
3|2 Scope|311
4|2.1 Companies Concerned|311
4|2.2 Entities Excluded|311
4|2.3 Geographical Scope|312
4|2.4 Definition of the Term ``Merger´´|312
3|3 Protection of Public Interest and of Various Stakeholders|315
4|3.1 Opposition to a Merger on Public Interest Grounds|315
5|3.1.1 Possible Grounds of Opposition|315
5|3.1.2 Competition Law Regulatory Restrictions|315
5|3.1.3 Defense of ``Strategic´´ Industries|317
4|3.2 Stakeholder Protection|317
5|3.2.1 Creditor Protection|317
6|Ordinary Creditor Opposition|317
6|Bondsholder Protection|318
5|3.2.2 Minority Shareholder Protection|319
6|Information Right|319
6|Abuse of Majority|320
6|Shareholder Approval|320
6|Simplified Procedure|322
5|3.2.3 Employee Participation|323
6|Principle|323
6|Exceptions|324
3|4 Procedure|326
4|4.1 Procedure Before the Shareholder Approval|326
5|4.1.1 Common Draft Terms of Cross-Border Mergers|326
5|4.1.2 Management Report|327
5|4.1.3 Independent Report|327
4|4.2 Pre-merger Certificate and Scrutiny of the Legality of the Merger|328
5|4.2.1 Absence of Causes of Nullity|328
5|4.2.2 Pre-merger Certificate|329
5|4.2.3 Scrutiny of the Legality|330
4|4.3 Entry into Effect|330
5|4.3.1 Effective Date of the Merger|330
5|4.3.2 Tax and Accounting Effective Date|332
4|4.4 Registration|333
4|4.5 Consequences of the Cross-Border Merger|334
3|5 Tax Law Overview: Implication of the Euro Park Service Case|334
3|6 Towards a Cross-Border Mobility Directive|335
3|References|336
2|The Implementation of the Cross-Border Mergers Directive (2005/56/EC) in Germany: A Story of Insufficiencies and (Better) Alte...|339
3|1 Introduction|339
3|2 A Short History of the Law on Mergers in Germany|340
3|3 Implementation of the Cross-Border Mergers Directive in Germany|340
4|3.1 (Limited) Scope of Application|341
4|3.2 (Extensive) Protection of Minority Shareholders|342
5|3.2.1 Ex-ante Protection by Appraisal Right|342
5|3.2.2 Ex-post Protection by Limited Review of the Shareholder Resolution|343
5|3.2.3 Criticism and Call for Reform|344
4|3.3 (Improper) Rules on Creditor Protection|344
4|3.4 Employee Participation|345
4|3.5 The Limited Impact of the Codified Cross-Border Merger Law on Legal Practice|346
3|4 Application of Non-codified Cross-Border Transformation Law As Alternative Strategy|346
4|4.1 European Background|346
4|4.2 Cherry-Picking of the Applicable Law|347
4|4.3 Advantages and Disadvantages|348
3|5 Summary|348
3|Annex (English Translation of §§ 122a ff. German Transformation Act)|349
4|Chapter 10 (Cross-Border Merger of Companies Limited by Shares)|349
3|References|354
2|Experiences from the Implementation of the Cross-Border Mergers Directive in Greece|356
3|1 Introduction|356
4|1.1 Greek Legislation Implementing the CBMD|356
4|1.2 Infringement Proceedings|357
4|1.3 The Availability of Cross-Border Mergers in Greek Law Before the Adoption of the CBMD|358
4|1.4 Types of Company in Greek Law|359
3|2 The Multi-Level Regulatory Model of the CBMD|359
3|3 Implementation of the CBMD in Greece: A Critical Overview of the Most Important Provisions|361
4|3.1 Scope|361
4|3.2 The Definition of ``Merger´´|364
4|3.3 Cash Payment|365
4|3.4 Procedure|365
3|4 Protection of Minority Shareholders and Creditors in the Context of Cross-Border Mergers|371
3|5 Gold-Plating of the Transposition of the CBMD into Greek Law and Optional Provisions|377
3|6 Reincorporations and Cross-Border Mergers in Greek Law|381
3|7 Stakeholders´ Views and Cross-Border Mergers Activity|384
3|8 Concluding Remarks|386
3|References|388
2|The Implementation of the Cross-Border Mergers Directive in Italy: An Overview with a Critical Assessment of Dissenting Shareh...|391
3|1 Introduction|391
3|2 Scope of Application. Eligible Companies|393
3|3 Common Draft Terms. Management and Expert Reports. Cash Payment|394
3|4 Approval by the General Meeting|395
3|5 Pre-merger Certificate|397
3|6 The Deed of Merger|398
3|7 Scrutiny of the Legality of the Cross-Border Merger|399
3|8 Registration of the Cross-Border Merger. Date in Which the Merger Takes Effect|399
3|9 Validity of the Merger|400
3|10 Cross-Border Mergers Subject to Simplified Formalities|401
3|11 Protection of Creditors|402
3|12 Protection of Dissenting Members|403
4|12.1 Appraisal in Domestic Mergers|404
4|12.2 How Cross-Border Mergers May Harm Dissenting Members|405
4|12.3 Measures of Minority Members´ Protection in Merger Law|408
4|12.4 Is Additional Protection Justified?|409
3|References|410
2|The Implementation of the Cross-Border Mergers Directive in Luxembourg|412
3|1 Introduction and Context|412
4|1.1 Luxembourg´s Openness to Corporate Restructuring Schemes Including Cross-Border Mergers (CBM)|412
4|1.2 The Three Waves/Generations of CBM|413
4|1.3 The Elements Defining the Openness of Luxembourg´s Legislation Relating to CBM|414
3|2 Specifically Relating to the Implementation of the CBMD in Luxembourg|415
3|3 Beyond the CBMD: More Issues Relating to Companies´ Mobility Have to Be Addressed|417
3|4 Conclusion|418
3|References|419
3|Books and Book Chapters|419
3|Articles|419
3|Further Reading|419
2|Implementation of the Cross-Border Merger Directive in the Netherlands|421
3|1 Introduction|421
3|2 Scope|422
3|3 Merger Forms: Mother-Daughter Merger, Sister Merger and Triangular Merger|423
3|4 Procedure|425
3|5 Creditor Protection|426
3|6 Minority Protection|429
3|7 Employee Participation|431
3|References|433
2|Cross-Border Mergers: Experiences from Poland|435
3|1 Introduction|435
3|2 Legal Framework for Cross-Border Mergers in Poland|436
3|3 Cross-Border Merger Procedure|437
3|4 Data Analysis of Cross-Border Mergers with Polish Companies|444
4|4.1 Methodology|444
4|4.2 CBMs in Poland: Analysis and Presentation of Data|445
4|4.3 Final Notes|448
3|5 Summary and Conclusions|449
3|References|450
2|The Mutual Influence Between Cross-Border Merger and Common Merger Regimes in Spanish Law|452
3|1 The Regulatory Framework for Intra-Community Cross-Border Mergers Under Spanish Law|453
3|2 The Aim of Directive 2005/56/EC, on Cross-Border Mergers of Limited Liability Companies|456
3|3 Alternative Methods to Cross-Border Mergers: The Arrangement|457
3|4 The Concept of Intra-Community Cross-Border Mergers. An Objective Delimitation and, Above All, a Subjective One|458
3|5 The Nature of a Merger Process: Its Hybrid Character|461
3|6 Types of Intra-Community Cross-Border Mergers|462
3|7 Regime Applicable to the Intra-Community Cross-Border Mergers. The Continuous Reference to the General Merger Regime to Supp...|466
3|8 The Preparatory Phase of a Merger|467
4|8.1 Common Draft Terms of Merger: The Possibilities of Modifying Them in Spanish Merger Legislation|467
4|8.2 Publishing the Draft Terms of Merger|470
4|8.3 Reports from Management or Administrative Organs|471
4|8.4 Independent Expert´s Reports|473
4|8.5 Merger Balance|474
3|9 The Decision-Making Phase of the Merger|475
3|10 The Execution Phase of the Merger|476
4|10.1 Document Formalization in the Intra-Community Cross-Border Merger|476
4|10.2 Registration in the Execution Phase of a Merger and the Need to Resort to Conflict Rules|476
4|10.3 Issuing Pre-merger Certificates|477
4|10.4 International Registry Classification or the Scrutiny of the Legality of the Intra-Community Cross-Border Merger|478
4|10.5 Registration and Publication of the Intra-Community Cross-Border Merger|479
4|10.6 Nullity of the Intra-Community Cross-Border Merger|480
3|11 Redress Mechanisms|481
3|12 Conclusions|481
3|References|482
2|Cross-Border Mergers Directive and Its Impact in the UK|485
3|1 Introduction|485
3|2 Type of Companies, Mergers and Process of Cross-Border Mergers|488
4|2.1 Comparison of Third and Tenth Directives|488
4|2.2 Types of Companies|489
4|2.3 Types of Mergers|490
4|2.4 Process of Cross-Border Mergers|491
4|2.5 Employee Participation|493
3|3 Regulations and Facilitation of Cross-Border Merges|494
3|4 Schemes of Arrangement and Cross-Border Mergers|498
3|5 Popularity of Takeovers Versus Mergers|500
3|6 Challenges of Brexit to Cross-Border Mergers|507
3|7 Conclusion|509
3|References|510