companies

  • Exclusion of a Shareholder though Initial Capital not Fully Paid up

    Exclusion of a Shareholder though Initial Capital not Fully Paid up

    Can a partner of a company be excluded from being a shareholder, or is it not prevented by the fact that his shares are not fully paid up? As you surely remember, this is the major responsibility and duty of any founding shareholder. The Federal Court of Justice gave us its opinion on August 4, 2020 (re II ZR 171/19).

  • How to give notice to non-shareholding director

    What Rules Apply when giving Notice to Non-Shareholding Director

    There were discussions on whether the normal rules for terminating employment set out in §621 BGB are also applicable for non-shareholding directors – at least insofar as the employment contract refers to statutory termination provisions. The Federal Labor Court issued a new ruling on June 11, 2020 (re 2 AZR 374/19).