Exit rights of minority shareholders in a private limited company (IVOR nr. 72) 2010/4.4.3.2:4.4.3.2 Appraisal right

Exit rights of minority shareholders in a private limited company (IVOR nr. 72) 2010/4.4.3.2

4.4.3.2 Appraisal right

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

The shareholder in a disappearing GmbH involved in a cross-border merger is entitled to an appraisal right if the acquiring company is not governed by German law. This appraisal right is found in § 122i UmwG. Krause and Kulpa point out that the legislator introduced this appraisal right for the following reason:

"Shareholders should not be forced to accept the modification of their rights and obligations, which results from the change into a foreign legal form."1

In order to qualify for the appraisal right, the shareholder of the demerging GmbH has to vote against the resolution approving the demerger.2 The dissenting vote of the shareholder has to be recorded in the minutes of the general meeting of shareholders. As mentioned in § 4.4.3.1, the appraisal right can be invoked against the disappearing company. After the cross-border merger, the appraisal right must be invoked against the acquiring company, whereas this obligation is transferred to the acquiring company automatically by universal succession of title (Universalsukzession), similar to all other rights and obligations of the disappearing company.3 Consequently, the appraisal right does not have to be effectuated before the cross-border merger is effected.4

Deze functie is alleen te gebruiken als je bent ingelogd.