The general initial problem with the hidden contribution in kind is that a cash contribution from a shareholder towards the share capital is used to purchase assets of the same shareholder, thereby circumventing the existing regulations on contributions in kind for corporations. The possibility of curing this problem has not yet been conclusively clarified in Austria.

 

According to established case law, the corporate law regulation (§ 45 AktG), which offers a possibility of recovery, is not to be applied analogously to GmbHs, whereby the recent case law of the OGH could point the way to a rethink. Whether there is a (very practical) possibility of curing the hidden contribution in kind in the case of the GmbH has been largely left open to date.

Further information on the Possibility of restructuring hidden contributions in kind will be in Long text shown.

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