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Systematically Flogging the Wrong: EU Corporate Fines Violate the Fundamental Rights of Shareholders – The European Commission as Revenant of the Persian Great King Xerxes

Systematically Flogging the Wrong: EU Corporate Fines Violate the Fundamental Rights of... EU fines are imposed on companies, not managers. Economically, they hit the shareholders. Yet, the shareholders have typically not participated in the company’s wrongdoings, and corporate law often cuts-off shareholders from management. This article submits that the Commission’s corporate fines thus disproportionately restrict shareholders‘ rights under the EU Charter of Fundamental Rights: As corporate fines are manifestly unsuitable to reach their purpose, hit the wrong and hence do not „strike the right balance“, they are incompatible with the Charter. The increased significance of shares for citizens’ personal financial autonomy and old age provision resulting from the ECB’s low interest policy and the EU’s mushrooming fine amounts corroborate this finding. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Business Law Review Kluwer Law International

Systematically Flogging the Wrong: EU Corporate Fines Violate the Fundamental Rights of Shareholders – The European Commission as Revenant of the Persian Great King Xerxes

Reuter, Alexander
European Business Law Review , Volume 32 (4): 46 – Aug 1, 2021
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Publisher
Kluwer Law International
Copyright
Copyright © 2021 Kluwer Law International BV, The Netherlands
ISSN
0959-6941
Publisher site
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Abstract

EU fines are imposed on companies, not managers. Economically, they hit the shareholders. Yet, the shareholders have typically not participated in the company’s wrongdoings, and corporate law often cuts-off shareholders from management. This article submits that the Commission’s corporate fines thus disproportionately restrict shareholders‘ rights under the EU Charter of Fundamental Rights: As corporate fines are manifestly unsuitable to reach their purpose, hit the wrong and hence do not „strike the right balance“, they are incompatible with the Charter. The increased significance of shares for citizens’ personal financial autonomy and old age provision resulting from the ECB’s low interest policy and the EU’s mushrooming fine amounts corroborate this finding.

Journal

European Business Law Review – Kluwer Law International

Published: Aug 1, 2021

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