Porsche won dismissal of minority investor suits over 2009 shareholder meeting

Article by Christian Andrei, on August 29, 2010

The management board of Porsche SE garnered a win when Stuttgart Regional Court in Germany dismissed the minority investor lawsuits that sought to invalidate the 2009 supervisory board election as well as other decisions that were arrived at during that year's shareholder meeting.

Primarily, the suit is centered on the salaries amounting to 143.5 million euros ($177.4 million) that Porsche's management board pocketed in the fiscal year that ended in July 2008.

Of this amount, about 139.5 million euros was linked to options on Volkswagen AG shares that Porsche had built up that year during a takeover attempt that eventually fell on its face.

The shareholder meeting actually occurred in January 2009-- which was before Porsche's takeover bid was given up. After the botched attempt to acquire Volkswagen, Porsche's debt then tripled to over 10 billion euros.

Notably, this bid was being led by former CEO Wendelin Wiedeking. Volkswagen eventually agreed to merge with Porsche in August.

The court denied the motion that also went after decisions discharging directors from liability for the 2008 fiscal year.

The suits alleged that they approved illegally high compensation for the management board. After the court decision was revealed, Porsche spokesman Frank Gaube said that the company's  position was backed in full.

Topics: porsche, germany

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