Entries by Ester Hahn
ACT ON MITIGATING THE EFFECTS OF THE COVID-19 PANDEMIC – CHANGES IN INSOLVENCY AND CORPORATE LAW
Insolvent, but (for the time being) no obligation to file for insolvency! This is the heart of the insolvency law related legislative measures which have been adopted last week in a rush to secure the existence of German Companies. However, also a number of other insolvency law provisions have been suspended or relaxed so as to facilitate and foster cash inflow and financing activities for the companies affected by the current crisis.
IMPACT OF THE PANDEMIC ON EXISTING CONTRACTS AND THE DESIGN OF FUTURE CONTRACTS
In case of disturbances in existing contractual relationships during the current pandemic, both contracting parties may look for approaches to avoid having to deliver, to pay, to demand or refuse compensation. If contract negotiations currently take place, one will be reflecting upon how to draft the contract, in order to be adequately secured in the future.
EUR 600 BILLION AGAINST THE CORONAVIRUS CRISIS (ALSO FOR SYSTEM-CRITICAL START-UPS) – THE ECONOMIC STABILIZATION FUND (“ESF”)
The various measures to mitigate the impact of the COVID-19 pandemic now include the establishment of the ESF to support companies for a limited period of time, primarily by providing guarantees but also hybrid or equity financing – a mechanism that was already tested during the financial crisis to support banks.
DIGITAL FOUNDING ERA – COMPANY FOUNDATION BY MOUSE CLICK?
The directive “amending Directive (EU) 2017/1132 with regards to the use of digital tools and processes in corporate law” is intended to promote digital change in corporate law. With this directive which is part of the so-called Company Law Package of the European Commission the European Legislator has set the legal framework for, inter alia, the online foundation of corporations, the online registration of branch offices and the online submission of corporate documents.
IMPORTANCE OF FAMILY-LAW PROVISIONS IN THE CONTEXT OF COMPANY ACQUISITIONS
In the course of a transaction in which a company or shares in a company are sold in whole or in part, family-law provisions must often be observed. In this context, the Higher Regional Court of Saarbrücken and the Higher Regional Court of Oldenburg have recently commented on two cases of practical relevance, namely the obligation to obtain the approval of the other spouse in the case of disposition and the approval of a transfer of the limited partner’s share in favor of minors.