Diamantis (Law relating to undertakings) [2000] EUECJ C-373/97 (23 March 2000)

Diamantis (Law relating to undertakings) [2000] EUECJ C-373/97 (23 March 2000)

Community law does not preclude national courts from applying national provisions to determine abuse of rights in actions based on Community law, provided such application does not undermine the full effect and uniform application of Community law. A shareholder cannot be deemed to abuse rights under Article 25(1) of the Second Directive merely due to minority status, benefit from reorganisation, non-exercise of pre-emption, request for reorganisation, or delay in bringing action. However, if the remedy chosen is manifestly disproportionate and seriously damages legitimate interests of others, national courts may apply abuse of rights provisions.

Citation
[2000] EUECJ C-373/97
Parties
Applicant: Mr Diamantis; Respondent: Greek State; Respondent: Organismos Ikonomikos Anasinkrotisis Epikhiriseon AE (OAE)
Jurisdiction
European Union
Judgment Date
23 March 2000
Procedural Posture
Preliminary Ruling / Reference From National Court (polimeles Protodikio Athinon) Under Article 177 EC Treaty
Outcome
Preliminary ruling issued; Community law does not preclude national courts from applying abuse of rights provisions under specified conditions.
Legal Topics
Abuse of Rights, Shareholder Rights, Capital Maintenance, Interpretation of Second Council Directive 77/91/eec
European Union Law Company Law Abuse of Rights Shareholder Rights Capital Maintenance Interpretation of Second Council Directive 77/91/eec

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 13 Party arguments 2 Amounts and remedies 10
Sign in to unlock

Parties

Mr Diamantis

Applicant

Greek State

Respondent

Organismos Ikonomikos Anasinkrotisis Epikhiriseon AE (OAE)

Respondent

Procedural Posture

Preliminary Ruling / Reference From National Court (polimeles Protodikio Athinon) Under Article 177 EC Treaty

Legal Issues

  1. 1 Whether national law on abuse of rights can defeat a shareholder's action based on Article 25 of Second Directive 77/91/EEC
  2. 2 Compatibility of Greek Law No 1386/1983 with Second Directive 77/91/EEC

Ratio Decidendi

Community law does not preclude national courts from applying national provisions to determine abuse of rights in actions based on Community law, provided such application does not undermine the full effect and uniform application of Community law. A shareholder cannot be deemed to abuse rights under Article 25(1) of the Second Directive merely due to minority status, benefit from reorganisation, non-exercise of pre-emption, request for reorganisation, or delay in bringing action. However, if the remedy chosen is manifestly disproportionate and seriously damages legitimate interests of others, national courts may apply abuse of rights provisions.

Court Disposition

Preliminary ruling issued; Community law does not preclude national courts from applying abuse of rights provisions under specified conditions.

Orders

  • Community law does not preclude national courts from applying a provision of national law to determine abuse of rights in actions based on Article 25(1) of the Second Directive, provided the application does not undermine the full effect and uniform application of Community law.