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Archive for the Author ‘Thomas Schwab’
Compensation when leaving a German civil-law partnership
When leaving a German civil-law partnership (Gesellschaft des bürgerlichen Rechts; “GbR”), the leaving partner has a legal entitlement to compensation. If the partnership is continued by the remaining partners, this claim for compensation is aiming against the partnership and not against […]
Director Liability of a British Limited Company in Germany
Business in Germany may also be done by using the legal form of a Limited company. If, however, insolvency proceedings are initiated in Germany with regard to the assets of a private company limited by shares (Limited) registered within the English […]
Post-contractual non-competition clauses for commercial agents
The Federal Court of Justice (Bundesgerichtshof) ruled that a post-contractual non-competition clause contained in a non-negotiated commercial agency contract was ineffective because it violated the requirement of transparency (Section 307 (1) of the German Civil Code). A company asserted claims against […]
Company reorganization: Commercial agents are entitled to compensation claim
The Federal Court of Justice decided that in cases of a company splitting the transferring company is liable as joint debtor for payment of the compensation claim to commercial agents in accordance with the Commercial Code. Under the German Transformation Act, […]
c/o supplement permitted in GmbH business address
A company with limited liability is obligated to have a German business address, even if the administrative offices are in another country. c/o supplement makes deliveries easier In 2009, Naumburg Higher Regional Court held that the c/o supplement was permitted since […]
GmbH Shareholders have far-reaching information rights
Shareholders of a German Limited Liability Company (GmbH) have a legally established right to information and inspection, which may be denied by the managing director only under strict conditions. Managing directors have obligations to the shareholders According to Section 51a of […]