European Commission v. Portuguese Republic
European Union Court of Justice
Case C-212/09, 2011 E.C.R. I-10889 (2011)
- Written by Elliot Stern, JD
Facts
To privatize its energy sector, Portugal (defendant) set up a stock corporation to own and operate enterprises formerly run by the state. One such corporation, GALP Energia SGPS SA (GALP), offered shares to the public. However, in accordance with the rules set by Portugal, the Portuguese government retained special shares, known as golden shares, that granted the holder of such shares special powers, including the power to veto amendments to GALP’s articles of incorporation and to appoint GALP’s chairman of the board. The European Commission (plaintiff) brought an infringement action against Portugal, alleging that retaining such golden shares by the Portuguese government violated the free movement of capital. Portugal argued that the golden shares were necessary to guarantee Portugal’s energy supply, noting that without the golden shares, investments in GALP made by sovereign wealth funds or investments linked to terrorist groups could threaten Portugal’s energy supply.
Rule of Law
Issue
Holding and Reasoning (Per curiam)
What to do next…
Here's why 824,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,400 briefs, keyed to 989 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.