On the occasion of the KapMuG-evaluation process triggered by the Federal Ministry of Justice and Consumer Protection (BMJV), Deutsches Aktieninstitut has pleaded for an indefinite retention of the bill. The KapMuG has proved as a practicable tool for issuers and private investors alike. However, there is still room for improvement in the concrete design of the litigation proceedings. Moreover, clarifying the relationship of the KapMuG to the recently adopted ‘Civil Proceedings Model Case ...
Deutsches Aktieninstitut fears that the EU Commission’s legislative proposal on representative actions will – if adopted unchanged – create more problems than it will solve. The level of safeguards against abusive litigation remains far behind the standards adopted in the Commission’s 2013 recommendation on collective redress. Furthermore, the interaction of national and European rules on collective redress remains unclear and enhances forum shopping.
In its comments on the German Federal Government's draft of a civil proceedings model case act, Deutsches Aktieninstitut calls for the adoption of stricter rules assessing the admission-procedure of claims in order to prevent abusive litigation. In addition, Deutsches Aktieninstitut points at the problem of an uncoordinated coexistence of national and European rules on collective redress, which will likely evolve in the near future.
Editorial Focus: IPO
French, German and Italian companies fear that the European Commission’s proposal on collective redress will end up in abusive litigation. Combining a high level of consumer protection with the proper functioning of the internal market requires following the principles of the Better Regulation Agenda. On the contrary, the creation of a compensation mechanism by means of representative action that does not include appropriate procedural safeguards could considerably harm business, promote ...
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