Judgment in Case C-41/15 Gerard Dowling and Others v Minister for Finance

The European Court of Justice decided on 8 November 2016 that the interests of shareholders and creditors cannot be held to prevail in all circumstances over the general interest of the stability of the financial system.

The Court considered that EU law does not preclude an increase in the share capital of a bank without the agreement of the general meeting of the shareholders in a situation where there is a serious disturbance of the economy and the financial system of a member state.

• Primary Source

EUObserver, 08.11.16: States can force bank recapitalisation, EU court says https://euobserver.com/economic/135820

RTÉ, 08.11.16: ECJ rules in favour of Government over IL&P stake https://www.rte.ie/news/business/2016/1108/829976-irish-life-and-permanent-ruling/

ESO: Background information: State aid: Commission temporarily approves rescue aid for Irish Life & Permanent Group Holdings http://www.europeansources.info/record/press-release-state-aid-commission-temporarily-approves-rescue-aid-for-irish-life-permanent-group-holdings/

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