What is participation


Participations are shares held by private individuals and companies in other companies. These shares are intended to serve the company's own business operations by establishing a permanent connection with those companies. In commercial law (Section 271 of the German Commercial Code), a participation is presumed if it makes up more than 20% of the company's capital. In that case, a company must show the relevant investment in the financial assets of the balance sheet. Shares in an OHG or KG as well as the position as an atypical silent partner are always involved. If you have 25% of the shares in an AG, then you have a blocking minority, over 50% of the shares, then you have a simple majority, over 75% of the shares, then you have a qualified majority.

are capital shares in other companies. Shares, Ruxe, GmbH shares, etc .; Section 152 (2) AktG speaks of a participation within the meaning of the law if 25% or more of the shares in the share capital of another company are held. According to §§ 20 f AktG there are reporting obligations. Participations mostly serve to secure procurement or sales, also for cooperation in research, development and technology.

Participations are to be understood in particular as capital shares in corporations and partnerships under company law if they are intended to serve the business operations of a company on a permanent basis and there is an intention to participate, i.e. the intention to exert influence on the investee company. In § 152 AktG 1965 it is regulated that a 25% participation in a corporation is to be regarded as participation within the meaning of the AktG 1965, but only if other facts do not make it clear whether a participation exists or not. This means that, on the one hand, a stake can already exist if the stake is less than 25%, on the other hand, a 25% stake is not necessarily to be regarded as a stake in the sense of stock corporation law.

are shares in other companies that are intended to serve their own business operations by establishing a permanent connection according to Section 271 (1) sentence 1 of the German Commercial Code. The prerequisites for the existence of a participation within the meaning of the HGB is the intention to participate in addition to the purpose as a permanent investment. Since the form of participation is irrelevant, shares, GmbH shares, general and limited partner contributions and participations as silent partners come into consideration. See also fixed assets (with references).

See: Company Share, Substantial Participation

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