Lower Saxony to retain veto right in VW operations
Porsche's attempts to revoke the controversial 'VW law' may come to naught, today's reports say. The law, which requires at least 80 percent of VW shareholders, was ordered to be rewritten or scrapped late last year by a European Union court.
The state of Lower Saxony holds a 20.1 percent in VW, effectively giving it the right to veto any decisions regarding the company, such as Porsche's attempts to buy a majority stake in Germany's biggest carmaker, announced on May 15.
Germany's Justice Ministry representative said the German government now agreed to amend the law that will protect Lower Saxony's veto rights, according to a Detroit News story. The law will be put to another court vote next week, on Tuesday, May 27. Objections from the European Commission could scrap the state's rights.