Politics

Necessary conclusions from the financial crisis

The company-law amendment adopted almost a year ago in the Federal Cabinet is now going through the Bundestag.  According to Sabine Leutheusser-Schnarrenberger, the 2012 company-law amendment draws the right lessons from the financial crisis. The generally well-functioning company law need not be massively rebuilt even in the light of the financial crisis, but selectively improved and simplified. The law was a further contribution to a solid liberal economic policy, the Federal Minister of Justice continued. The aim was, among other things, to make it much easier for companies, in particular banks finding themselves in need, to convert their debt into equity. The companies would be given the possibility to issue convertible bonds, which can also be repaid not in cash, but in shares. In addition, there would be the option in the future to issue preference shares without additional claims to payment of fancy dividends. The bill would also strengthen public companies, because so-called predatory shareholders could no longer delay AGM resolutions through tactical actions for annulment, the Minister of Justice went on. The 2012 company-law amendment allows companies, according to the the Ministry, to continue to choose between registered and bearer shares. For non-listed companies, the use of bearer shares had come under international criticism on grounds of money laundering and terrorist financing. Leutheusser-Schnarrenberger (FDP) sees good prospects that the Bundestag will now act swiftly and let the bill enter into force in the first half of 2013.