What are the information rights of GmbH shareholders?
Germany is known for setting GmbH companies, which is a form of company formation particularly found in the country. At the time of setting up a GmbH in Germany, the shareholders are given the right of inspection and information at the time of establishment. The right as well as duties of the shareholder in a GmbH company may vary in origin as well as nature. The rights and duties are even transferred to the next shareholder based on inheritance, assignment or otherwise. However, later the Managing Director has the power to deny the same under certain conditions.
Under their administrative
rights, the shareholders have a right to call a meeting, conduct a meeting,
attend the same, vote in the meeting, and provide information related to
various corporate activities.
Role
of The Managing Director of GmbH:
The Managing Director of the
GmbH Company has an obligation towards the shareholders for providing the
information and allowing them for inspection
upon a request put forth by them. The said right may be revoked only in
the case it is felt that the information so requested may be used for non
company purposes.
Role
of Shareholder’s resolution:
In case the shareholder’s
resolution decides for the inspection of the corporate books on a quarterly
basis on a regular basis; then this may be considered to be invalid. This is
because after forming a GmbH in Germany,
it is permitted for regulate the process related to request for
information. However, there is no entitlement given to the shareholders for information
which is restricted.
Specific
documents required:
Comments
Post a Comment