The European Parliament's Rejection of the Take-over Directive Proposal - A Corporate Governance Approach
This article examines why Members of the European Parliament (MEPs) in 2001 turneddown a proposal for an EU take-over directive? The first explanation focuses on partyideology. However, MEPs overwhelmingly voted according to national rather than partylines. Two additional explanations emphasise national characteristics: labour marketlegislation (national schemes to protect employees against dismissals) and corporategovernance issues. Labour market legislation can explain the UK and German MEP votesbut not the Swedish and French MEPs votes. These votes can be explained byemphasising measures against take-overs such as a high level of market capitalisation andunequal voting rights.
Jette Steen Knudsen
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