4.3.8.2 No compensation for reflective loss

Remarkably, the shareholder receives at maximum, financial compensation for the loss of his shares pro rata to the market value. Unlike in England and Wales,1 it does not seem possible for a minority shareholder to receive compensation for the decrease in value of the shares as a result of the oppression, or, in other words, compensation for reflective loss.2 Up to now, there has been no debate in Germany on the question whether reflective loss has to be taken into account when valuing the shares. In my opinion, this difference could be explained by the fact that in Germany the exit right can be effectuated without interference of the court. The questions whether and to what extent reflective loss needs to be taken into account when valuing the shares are often complex and, therefore, not appropriate to handle out of court.