German company law is an influential legal regime for companies in Germany. The primary form of company is the public company or Aktiengesellschaft

Aktiengesellschaft

Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e. owned by shareholders, and may be traded on a stock market. The term is used in Germany, Austria and Switzerland...

(AG). The private company with limited liability is known as a Gesellschaft mit beschränkte Haftung (GmbH). A partnership is called a Kommanditgesellschaft

Kommanditgesellschaft

A Kommanditgesellschaft is the German name for a limited partnership business entity and is used in German, Austrian and some other European legal systems....

(KG).

Shareholders

German law specifically reserves shareholders right and duty to approve substantial non cash asset transactions through case law in Germany under the so called Holzmüller doctrine.

Constitutional amendments can be made at any time by 75% of shareholders (§179 AktG).

Management board

In Germany, §76 AktG says the same for the management board, while under §111 AktG the supervisory board's role is stated to be to "supervise" (überwachen).

Supervisory board

§84(3) AktG states that management board directors can only be removed by the supervisory board for an important reason (ein wichtiger Grund) though this can include a vote of no-confidence by the shareholders. Terms last for five years, unless 75% of shareholders vote otherwise. §122 AktG lets 10% of shareholders demand a meeting.

Gesellschaft mit beschränkter Haftung

External links

• Aktiengesetz (AktG)
• Gesetz betreffend die Gesellschaften mit beschränkter Haftung (GmbH-Gesetz, GmbHG).