Brussels, Dec 2 (EFE) .- The former shareholders of Banco Popular cannot request compensation from Banco Santander on the grounds that the information they received when acquiring the shares was inaccurate or obtain the return of the equivalent value, according to a general counsel of the Court of Justice of the European Union.
In some conclusions published this Thursday, the General Counsel responded to the questions raised on this matter by the Provincial Court of A Coruña.
According to the Advocate General, the applicable Directive opposes that those who acquired their shares before the start of the dissolution procedure could later present claims for compensation to the issuing entity or the entity resulting from a subsequent merger on the basis that the prospectus of the broadcast contained faulty information.
Nor does European legislation allow the issuing entity or its successor to be obliged to return the value of the shares and to pay interest for the declaration of nullity of the subscription contract.
Banco Popular’s resolution procedure is part of the bankruptcy of the Lehman Brothers bank in 2008 and the subsequent financial crisis.
To ensure an orderly management of banking crises, the EU set up two instruments: a common dissolution framework for all Member States and a single dissolution mechanism for the euro zone, within the framework of the Banking Union.
Several principles were established, including that the shareholders of the entity undergoing the dissolution procedure are the first to bear the losses and that no creditor should suffer losses higher than those they would have suffered if the entity had been liquidated under the procedure of dissolution. ordinary insolvency.
In this context, the dissolution of Banco Popular Español took place, which led to several successive amortizations and conversions of equity instruments, followed by the sale of the business to another bank, Banco Santander, which ended up absorbing Popular.
It was in this context that the Provincial Court of A Coruña addressed the Court of Justice of the EU.
Today’s conclusions recall that, according to the Court of Justice, the interest of investors does not prevail in any event over the interest of guaranteeing the stability of the financial system.
On the other hand, they point out that there are public interest objectives that allow restricting the right to property of shareholders in the field of bank dissolution.
In addition, they say, shareholders whose shares have been canceled as part of a bank dissolution procedure have other avenues to obtain compensation or to have a penalty imposed.
Finally, they point out that the dissolution mechanisms that imply an internal recapitalization, a total amortization and the sale of the business are contrary to an action for the annulment of the share subscription contract after the date of the resolution decision.
Although it is not binding, the European court follows in most cases the opinion of the Advocate General. EFE
(More information about the European Union at euroefe.euractiv.es)