A change of company object of a GmbH can be considered a re-establishment
23-Jul-2012 | News-Press Release
Cologne, Nordrhein-Westfalen ( prsafe ) July 20, 2012 - http://www.grprainer.com/en/Company-Law.html On 03.06.2012, the Federal Supreme Court (BGH) held that the resumption of business operations associated with a new company object should be classified as an economic re-establishment. This must be disclosed to the court of registration; otherwise liability was likely to arise.
GRP Rainer Lawyers Tax Advisors, Cologne, Berlin, Bonn, Dusseldorf, Hamburg, Munich, Stuttgart, Frankfurt www.grprainer.com exemplify: In the present case, the insolvency administrator brought on an action against the assets of a GmbH in insolvency proceedings. After a temporary closure, the GmbH resumed business activities. With the entry in the commercial register, it registered the transfer of the company's domicile and the new managing director. A change of corporate object, however, was not indicated. The defendant acquired the sole company share at a price of 7,500 euros. Afterwards, the company filed for bankruptcy. The plaintiff then claimed payment of the insolvency debts from the defendant, as owner of all shares.
The Federal Supreme Court confirmed that the change of company object equals the new economic establishment of the company. It also adjudicated the disputed question about how liability is determined if the re-establishment is withheld from the Commercial Register. According to the Federal Supreme Court, it is crucial whether there was a shortfall between the new assets of the company and the registered share capital during the re-establishment process. In such a case, extensive liability for impairment of capital of the owner of the shares would be considered.
The Gesellschaft mit beschränkter Haftung, GmbH / Limited Liability Company, is a so-called legal entity, which is equipped with own rights and obligations. To be capable of acting, the GmbH must appoint a managing director. This person can be one of the shareholders or also - unlike many other companies - an outsider.
The corporate form of the GmbH is preferred and chosen by many entrepreneurs when it comes to finding a suitable legal form for their own enterprise. This applies in particular to the so-called Ein-Mann (One-man) GmbH or also the family-owned company.
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