Santander won the battle with the former shareholders of Banco Popular. Court of Justice of the European Union (CJEU) has closed the door so that investors involved in the 2016 capital increase can file claims against the organization he leads. Ana Patricia Botin -which Popular purchased for the symbolic value of one euro – in compensation for the shares they had acquired before liquidation of the bank in June 2017claiming that the information they received when acquiring the titles was inaccurate.
That’s how he decided Luxembourg courtwhich reviewed the preliminary decision rendered Provincial Court of A Coruña to clarify whether the rules apply to the decision, such as shareholders being those bear the first lossare inconsistent with the right to compensation that investors have when the capital increase prospectus in which they participated was deficient. In particular, the case refers to 2016, when the couple invested more than 6,000 euros in real estate. a capital increase that took place in the same year of more than 2,500 million euros.. However, at the end of the same year, the company had to make significant adjustments to the value of its assets, reflecting the biggest loss in its history, which reached 3,485 million euros.
June 2017 Single permission fee (JUR) agreed to dissolve Banco Popular, leaving the face value of its share capital at zero. For all these reasons, in 2018, two victims went to court to demand nullity of a share subscription agreementclaiming that it was signed on the basis of accounting and generic information provided by incomplete and inaccurate. Firstly, the affected parties received the approval of the court in A Coruña, which opened up the possibility for them to claim compensation from the “heir” bank. However, Santander appealed this decision to the provincial court, which, given the doubts referred the case to high European institutionsYes
In its ruling published this Thursday, the CJEU recalls that DRestructuring and Resolution Directive financial institutions establishes the principle that “it is the shareholders, and then the creditors of a credit institution or an investment services company, must first compensate for the losses incurred as a result of the application of this procedure“In this sense, and in accordance with the criteria declared on December 2 by EU Attorney General Jean Richard de la Tour, the court does not consider it possible for the shareholders to demand a claim from Banco Santander.
The proposal explains that the said directive explicitly prevents this,”after the full redemption of a share of the authorized capital of a credit institution“, investors who purchased shares under a public offering issued prior to the start of the settlement procedure may carry out “act of responsibility for the information contained in the brochure or a claim for the annulment of the subscription agreement for these shares.
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