26. July 2023
Stephan Schmalz on the new flexible company
On May 30, 2023, the ministerial draft of the Flexible Capital Companies Act (FlexKapGG) was published, introducing the concept of the Flexible Company (FlexKapG) as a legal hybrid between a GmbH and an AG. The draft includes significant innovations, such as Corporate Value Shares (CVS) that offer more flexibility in terms of capital contribution and voting rights. However, concerns exist regarding the lack of creditor protection and potential liability issues for managing directors. Additionally, the draft proposes an alternative to notarization requirements for share transfers, aiming to reduce costs and bureaucracy, particularly for international investors. The draft brings numerous changes that legal professionals must carefully examine, including amendments to the GmbHG and a reduction in the minimum share capital. The final outcome and effective date of these proposed changes remain uncertain. Read more on the topic in Stephan Schmalzl’s, partner and head of corporate at sms.law, recent article.