Six Volkwagen investors filed a case against the company for refusing to discuss the association’s aims to be compatibility emissions-cutting targets. At its recent annual general meeting (AGM) the invests state that the company refused to discuss whether its lobbying activities could threaten their investments.
The investors include Swedish public pension funds AP7, AP2, AP3, AP4, Danish AkademikerPension, and the Church of England Pensions Board. They allege that the automaker’s lobbying via its membership in automotive and business associations runs counter to its public messaging on the importance of the green transition. This exposes the company, and its investments – representing around 0.1% of Volkswagen shares – to operational and reputational damage, they argued in a statement. While Volkswagen does disclose its trade association memberships, the investors have previously said it should go further and say whether the associations’ aims are compatible with the car manufacturer’s emissions-cutting targets.
The case, filed at the Braunschweig court in Germany, will test whether companies have the right under German corporate law to refuse to include an item on an AGM agenda and whether Volkswagen can keep it off next year’s agenda as well.
AGM
Volkswagen rejected the proposal to include it on this year’s agenda on the grounds that the issue was beyond the competence of the general meeting. “It is worrying that our shareholder right to contribute to the annual meeting agenda has been refused. As a result, we felt the need to go to court to clarify this grey area for corporate law in Germany,” Emma Henningson of AP7 said.
In recent times, the company has made various announcements and also stated that they are going to invest up to 2 billion euros in a joint venture. The carmaker, which makes about 40% of sales and half of its profits in China, already carries out research and development for vehicle technology in the country, seen as a more advanced market for digital innovation than Europe or the United States. It operates numerous joint ventures in China, holding a 75% stake in its venture with JAC, a 50% stake with SAIC, and 40% with FAW. Volkswagen said that it was making large investments in software in China and was continuously assessing options for partnerships with local businesses. While all the investments indicate a positive direction for the company, the investors are expecting certain details on how the company is actually going. It remains unclear in which direction the lawsuit will continue.
