On the Future of European Creditor Protection and Capital Maintenance from a German Perspective

DGRV Working Paper No. 1/2010

20 Pages Posted: 10 Aug 2010 Last revised: 4 Jan 2013

Date Written: March 31, 2010

Abstract

An alignment of corporate policies with respect to the strategic objectives of the shareholders requires that the economic concerns of stakeholders are sufficiently protected by contracts or legal controls. Hereby, an important constraint is constituted by creditor protection legislation, in particular with respect to dividend payouts. These capital maintenance regulations are currently under close scrutiny. The annual non-consolidated financial statement, which follows the “modernized” German Commercial Code (Handelsgesetzbuch or ‘HGB’) is in danger of being replaced by IFRS accounting, supported by a solvency test. This paper aims to discuss the potential consequences from an economic, legal and political perspective. One major objective is to convey an idea of the German view on this subject.

Keywords: Capital Maintenance, Creditor Protection, Solvency Test, IFRS, German Commercial Code, Dividend Payouts

JEL Classification: K20, M41, M48, G35

Suggested Citation

Haaker, Andreas, On the Future of European Creditor Protection and Capital Maintenance from a German Perspective (March 31, 2010). DGRV Working Paper No. 1/2010, Available at SSRN: https://ssrn.com/abstract=1656279 or http://dx.doi.org/10.2139/ssrn.1656279

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
217
Abstract Views
1,139
rank
82,274
PlumX Metrics