Intergenerational Transfer of Family-Run Enterprises in Slovenia in Comparison with German Law

Abstract

After the Republic of Slovenia declared its independence in 1991 and adopted a new constitution, business in the country began to increasingly develop. Now, 30 years since declaring independence and the start of business development, we are witnessing the retirement of the first generation of business owners, and it is reasonable to expect the rise of such examples in the following years. With the change in generation and retirement of the first generation of business owners, the question arises as to how to legally regulate the transition of family companies to younger generations, with the objective of keeping the company within the family circle and avoiding fragmentation of the company because of a higher number of potential heirs. This article presents information on the transfer of a family company to the next generation with sole traders, personal companies, and companies with share capital in comparison to German law.