Germany: Corporate and Company Law

Two young women launched an Instagram account to foster inclusion and understanding of marginalized groups in German society, quickly attracting corporate attention for diversity workshops. As their platform grew to over 75,000 followers, they sought to transform their social media presence into an official nonprofit organization. McDermott's legal team provided pro bono counsel to guide them through the complex startup formation process in Germany.

German corporate group law provides various organizational options, with group coordination agreements emerging as a flexible alternative to traditional control and profit transfer agreements. This article examines the legal classification, practical structure, and strategic advantages of these coordination mechanisms, while exploring their boundaries and future role in corporate governance.

In small family businesses and medium-sized enterprises, individuals who assume management functions without formal appointment face significant legal exposure as "de facto managing directors." This risk becomes particularly acute during corporate crises when shareholders take operational control or when financing banks deploy representatives with extensive decision-making authority. German courts have developed comprehensive case law establishing that such individuals bear the same duties and liabilities a

On 29 April 2026, the German Cabinet adopted a draft bill implementing Directive (EU) 2024/1203 on the protection of the environment through criminal law (the Environmental Crimes Directive).

Corporate transactions in Germany present complex tax considerations for buyers and sellers, with fundamentally different implications depending on whether the deal is structured as an asset or share transaction. Understanding how capital gains taxation, real estate transfer tax, and depreciation rules apply to each structure is essential for optimizing after-tax outcomes and managing inherited tax liabilities.

A crisis at the cash-pool leader does not automatically make cash pooling impermissible. It does, however, materially intensify the review, monitoring and documentation duties of managing directors at the level of each participating company. The key issues are recoverability of the repayment claim, practical access to pooled funds and protection of the company’s own minimum liquidity.

Mit dem am 30. März 2026 verkündeten BRUBEG hat der deutsche Gesetzgeber nicht nur das „EU-Bankenpaket“ umgesetzt, sondern auch die Befugnisse der Versicherungs- und Finanzaufsicht...

The German automotive industry is facing its biggest crisis in decades.

On 19 February 2026, the European Securities and Markets Authority (ESMA) published a consultation proposing amendments to the guidelines on delays in the disclosure of inside information under the Market Abuse Regulation (MAR).