Commission of the European Communities v. Kingdom of Spain

Case C–338/06 – 18 December 2008 (2008)

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Commission of the European Communities v. Kingdom of Spain

European Union Court of Justice (First Chamber)
Case C–338/06 – 18 December 2008 (2008)

Facts

A dispute arose between the European Communities (the EC) (plaintiff) and the Kingdom of Spain (Spain) (defendant) over the application of preemptive rights. Under EC rules, preemptive rights apply first to existing shareholders before any other bondholders, bonds with convertible stock, or other interests could apply. Under Spanish law, preemptive rights were extended to shareholders and existing holders of bonds convertible into shares (convertible bondholders). The EC brought an action in the European Union Court of Justice to resolve the dispute.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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