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The Desirability of ‘Weak’ Form Legal Harmonization: Perspectives from Statutory Interpretation and Legal Coherence

Published online by Cambridge University Press:  06 March 2019

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Harmonized regulatory frameworks have become increasingly important. This is especially so following the global financial crisis, where there have been calls for a harmonized international response to securities regulation. Examples in the EU include MIFID and the Takeover Directive. MIFID regulates securities traders and stock exchanges. It contains rules that indicate the obligations on exchanges and traders vis-à-vis matters such as achieving the “best execution” of trades. The Takeover Directive regulates mergers and acquisitions, their regulations include regulations on anti-takeover provisions, compulsory acquisitions, and the method of paying for acquisitions. These impose a ‘weak’ form of harmonization: member states can opt out of some provisions, many provisions are vague (and require definition by domestic regulators) and member states retain the right to legislate around the harmonized framework. These directives have not received universal support.

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Copyright © 2012 by German Law Journal GbR 

References

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70 Thompson v. Byrne (1999) 161 ALR 632, 646 per McHugh J; Larry Alexander, Constrained by Precedent, 63 S. Cal. L. Rev. 1, 9-13 (1989); Meir Dan-Cohen, Bureaucratic Organizations and the Theory of Adjudication, 85 Colum. L. Rev. 1, 31 (1985); Randall Graham, ‘A Unified Theory of Statutory Interpretation', supra note 33; Jennifer McGruther, Chevron vs. Stare Decisis, 81 Wash. U. L. Q. 6, 612 (2003); Alfonso Miguel, Equality before the Law and Precedent, 10 Ratio Juris 372 (1997); Pierce, supra note 56, at 2243; Justice Antonin Scalia, The Rule of Law as a Law of Rules, 56 U. Chi. L. Rev. 1175, 1178 (1989); Schauer, supra note 56, at 595-598; Pamela Stephens, The new retroactivity doctrine: equality, reliance and stare decisis, 48 Syracuse L. Rev. 1515 (1998).Google Scholar

71 Telstra Corp Ltd v. Treloar, supra note 54, at 602, per Branson and Finkelstein J.J.; Dame, supra note 56, at 405; Pierce, supra note 56; Morange v. State Marine Lines Inc, 403, per Harlan J.Google Scholar

72 See on constitutional law: Lake Macquarie Shire Council v. Aberdare County Council; Street v Queensland Bar Association; McGinty v Western Australia; Singh v Commonwealth.Google Scholar

73 See on the importance of geographic equality: Leeth v. Commonwealth (1992) 174 CLR 455; McGruther, supra note 70. See also, Burrows, Remedial Coherence and Punitive Damages in Equity, supra note 23, at 390; Justice Peter Young, Equity, Contract and Conscience, in Equity in Commercial law 512 (Simone Degeling & James Edelman eds., 2005); Aquaculture Corporation v. New Zealand Green Mussel Co. Ltd. (1990) 3 NSLR 299, per Cooke P; Burrows, supra note 23; Michael Tilbury, Fallacy or Furphy? Fusion in a Judicature World, 26 U. N. S. Wales L. J. 357, 358 (2003).Google Scholar

74 Of course, this addresses only one concern with MiFID and the Takeover Directive. It does not address all concerns. For example, there are arguments that some of the specific provisions in MiFID and the Takeover Directive are inappropriate.Google Scholar