Exit rights of minority shareholders in a private limited company (IVOR nr. 72) 2010/4.2.2:4.2.2 Mandatory nature

Exit rights of minority shareholders in a private limited company (IVOR nr. 72) 2010/4.2.2

4.2.2 Mandatory nature

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 winding-up remedy aims to protect the minority shareholder, and because of that the remedy has a mandatory nature. The articles of association may widen its scope, but they can neither opt out nor restrict its application.1 The (former) Court of Appeal of Bavaria (Bayerisches Oberstes Landesgericht) has expressed this in the following way:

"Undoubtedly, it assures a minority right and can only be modified by the articles of association in favour of the minority (...) The articles of association can neither remove nor diminish this statutory ground for winding-up."2

Nonetheless, the articles of association may include a clause stating that disputes are to be resolved by way of arbitration. Such clause can only be validly included in the articles of association if all shareholders approved of it.3

Deze functie is alleen te gebruiken als je bent ingelogd.