Higher Regional Court Linz declares current seizure clauses inadmissible

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.

In a special contribution to the most recent legal column of the daily newspaper Die Presse, Daniela Huemer and Theresa Haglmüller present this decision and its possible consequences.

 

28. November 2019

 

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