NEWSLETTER 02-2017: DOES SMALL SHAREHOLDER FORCE AKTIENGESELLSCHAFT TO PAY FULL DISTRIBUTION?
In a recent decision (OGH dated October 24, 2016, 6 Ob 169/16w), the highest court had to deal with the request of a shareholder who was entitled to a full distribution due to a pro rata distribution claim of only EUR 7.42 and due to a common provision in the articles of association of the total retained profit of around EUR 10 million by the AG.
As a result, the shareholder prevailed with his claim – surprisingly to many – but beyond this individual case, this decision could have significant consequences not only for stock corporations but also for limited liability companies.
In a recent decision of the Supreme Court (OGH October 24, 2016, 6 Ob 169/16w), the Supreme Court dealt with the question of the permissibility of only a partial distribution of the balance sheet profits of a stock corporation if the articles of association do not expressly provide for this, and it comes to this a surprising result for many.
