The article of association regulates the relationship between the partners and, ideally, provides them with legal certainty for any disputes that may arise.
Depending on the legal form of the company, the content of the article of association is regulated in various pieces of legislation (e.g. GmbH Act, German Stock Corporation Act, German Commercial Code), but is also largely at the discretion of the shareholders. As disputes between the shareholders regularly threaten the existence of the company, it is advisable to include clear and legally secure arrangements in the article of association.
In particular, the fact that a shareholder may wish to leave the company prematurely, dies or gets into financial difficulties should already be taken into account when drafting the article of association. Clear regulations should be provided for these cases in order to avoid protracted disputes affecting the company and thus also all participating shareholders in the performance of their business activities.
Detailed and case-specific advice prior to the conclusion of a company agreement is therefore the best way to create legal certainty and avoid subsequent disputes. Contact us, our corporate lawyers will work out individual solution strategies for you.
