Registration courts supervise the election of supervisory board members by employees


A practice by the registration courts has been reported recently, whereby these courts request joint-stock companies to demonstrate that they do not employ over 500 employees or that their employees have elected the relevant part of the members of the supervisory board. The Business Corporations Act generally requires that the supervisory board of a joint-stock company employing more than 500 employees have a number of members divisible by three, with employees electing one third of those members. Failing that, the companies facing such a request risk to be dissolved by the registration court unless remedy is ensured within a relatively short deadline. If you have already received a similar call, our firm will be happy to assist in preparing your affidavits or, if necessary, arranging a rectification.