Entries by Ester Hahn

GMBH SHARES ENCUMBERED WITH USUFRUCT – RISK OF INDIRECT HIDDEN PROFIT DISTRIBUTION AND ARRANGEMENTS

Usufruct arrangements allow the separation of assets and income of an entrepreneurial investment. In this way, different income tax and inheritance or gift tax objectives can be achieved. The ruling of the German Federal Fiscal Court of 14 February 2022, file no: VIII R 29/18 on an indirect hidden profit distribution in connection with GmbH shares subject to usufruct exemplifies the pitfalls of arrangements with usufruct and thus the need for forward-looking tax planning.

CHANGES IN FOUNDATION LAW – “UPDATE” OR MERE UNIFICATION?

The foundation law currently in force urgently needs to be reformed. German foundations pursue almost exclusively charitable purposes and have often existed for several hundred years. Currently more than 23,000 foundations exist in Germany. The following article deals with the adopted changes in foundation law with a special focus on the actual innovations, which go beyond a mere unification.

DUTY TO RECORD WORKING HOURS – FEDERAL LABOR COURT PUBLISHES REASONS FOR DECISION

The Federal Labor Court has published the reasons for its decision of 12 September 2022 (1 ABR 22/21) regarding the obligation of employers to record working hours. Not all details have yet been clarified regarding the employer’s obligation to record the working hours of its employees, which is effective immediately. It remains to be seen whether the legislature will actually pass regulations as planned by the Federal Ministry of Labor.

honert advises Main Capital Partners on the acquisition of a majority stake in German healthcare software provider UHB Consulting

Düsseldorf-based Main Capital Partners has announced the acquisition of a majority stake in UHB Consulting AG, a leading provider of software solutions for the healthcare industry. honert provided comprehensive legal and tax advice to Main Capital Partners. With the acquisition, Main together with the management will support UHB in its further growth and adopt a selective buy & build strategy in the healthcare sector.

GMBH (GERMAN LLC) FORMATION NOW DIGITALLY POSSIBLE

On August 1, 2022, the Implementation Act for the EU Digitization Directive 2019/1151 (“DiRUG”) came into force. From now on, the formation of a GmbH or a UG (entrepreneurial company) is also possible from the comfort of one’s own desk chair instead of on the premises of a notary. However, notarial assistance is still required. In this article, we explain the procedure for digital incorporation and provide an outlook on further innovations in the context of the digitization of corporate law.

NO ANALOGOUS APPLICATION OF § 179A AKTG TO THE LIMITED PARTNERSHIP

In its ruling of 15 February 2022 (II ZR 235/20), the German Federal Court of Justice (Bundesgerichtshof – BGH) abandoned its previous case law according to which the legal concept of § 179a German Stock Corporation Act (Aktiengesetz – AktG) also applies to limited partnerships. § 179a AktG is not (any longer) analogously applicable to the limited partnership.