In its decision of 26 February 2020 (file no. XII ZR 51/19), the Federal Court of Justice (BGH) further refined its case law on the effective representation of a limited liability company (GmbH) by one of several managing directors with joint power of representation. This was prompted by the conclusion of a limited commercial lease agreement by one of several GmbH managing directors.

The Annual Tax Act 2020 was adopted on 16 December 2020 and introduces a number of amendments, which include, in particular, necessary adjustments to EU law and the case law of the European Court of Justice. Furthermore, the legislature is responding to (unwelcome) Federal Tax Court case law and implementing other supplementary measures to mitigate the COVID-19 pandemic.

With the recent update of its FAQs, the Federal Administrative Office has greatly expanded the criteria for determining a company’s beneficial owners. Companies subject to reporting requirements, shareholders and beneficial owners should be aware of the practical consequences this will have on their notification and reporting obligations.

When concluding a management board service agreement, a joint-stock company is represented by the supervisory board which must pass a resolution on the conclusion of the service agreement. When the agreement itself is subsequently concluded, the supervisory board is usually represented by its chairman. The Regional Court Munich I (ruling dated 13 February 2020; file no. 5 HK O 2393/19) has now dealt with the question of whether a supervisory board chairman who concludes a service agreement in the name of the company with a designated management board member in the absence of a corresponding supervisory board resolution is obliged to pay damages to the designated management board member.