Urgent legal issues
Seizure rights enable shareholders to demand the transfer of their share for compensation under certain conditions. Those conditions might be insolvency of a shareholder. Such regulations are common practice and aim to prevent an insolvent shareholder’s share being sold by auction and thus introducing a stranger to the company’s shareholders.
Now the Higher Regional Court Linz (GZ 6 R 95/19m) has brought this to an end and declared that the Insolvency Statute (“Insolvenzordnung”) contradicts such practices.
28. November 2019