Oct 23 - The European Union's highest court rules the German law that shields carmaker Volkswagen from takeover is illegal. The European Court of Justice in Luxembourg says the law restricts the free movement of capital. The decision is expected to affect the future ownership of the Volkswagen group and could pave the way for rival Porsche to increase its 31% stake to take majority control of Europe's biggest car maker. The ruling could also have wider implications for corporate Europe, as the European Commission continues its crackdown on so-called "golden shares", the strategic stakes held by governments in listed companies. Joanna Partridge reports.