With the forfeiture of business shares, a shareholder’s company share is eliminated. The shareholder is thus excluded from the company. The cancellation of the shares can only be decided by a general meeting. For this, the forfeiture must be decided effectively and legally. A forfeiture is only possible if it is provided for in the social contract. If the company’s articles of association do not provide for a major majority, the forfeiture will be decided with a majority of the votes cast.
A company lawyer can accompany the individual necessary steps of the forfeiture or assess the legality of a forfeiture and take legal action against the forfeiture.
A forfeiture is effective if there is an important reason for the forfeiture. If this is not the case, the illegal decision can be challenged by a lawyer before the court. If the shares have been effectively canceled, the shareholder has a right to compensation against the company.
If there are no provisions in the articles of association to exclude or redeem shares, there is the possibility of bringing an action for exclusion. The exclusion will only take effect after the severance payment has been paid to the shareholder and if the court upholds the judgment of the exclusion suit.
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