The Impact of Appraisal Remedies on the Financial Position of the Private Company

IF 0.5 Q3 LAW European Company Law Pub Date : 2023-06-01 DOI:10.54648/eucl2023011
Olivier Roodhooft
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Abstract

Appraisal remedies offer a withdrawal right to minority shareholders who are confronted with midstream-changes in a company. This form of minority protection is a hot topic in (European) company law especially since the introduction of appraisal remedies in the Cross Border Mobility Directive. This article deals with an underexposed risk to this form of minority protection in private companies, namely the impact of the payment of the compensation for the withdrawing shareholder on the financial position of the company. Just as any other distribution, the payment of the compensation could endanger the solvency and liquidity of the company. This is not only relevant for the company creditors but also the remaining shareholders. I will elaborate on this risk and how remedies for creditor protection can temper it. This article argues that this risk will, however, only seldomly occur as the impact on the financial position of the company will have a deterrent effect on the underlying transaction. The most plausible situations in which this risk will occur are ‘do or die’ transactions and the scenario of irrational behaviour of shareholders. For these scenarios, means of creditor protection are needed. Appraisal remedies, withdrawal of shareholders, private companies’ minority protection, creditor protection
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评估救济对非上市公司财务状况的影响
评估补救措施为面临公司中游变动的小股东提供了退出权。这种形式的少数人保护在(欧洲)公司法中是一个热门话题,特别是自从在跨境流动指令中引入评估补救措施以来。本文讨论的是私营公司中这种形式的少数股权保护的未充分暴露的风险,即对退出股东的补偿支付对公司财务状况的影响。就像任何其他分配一样,赔偿的支付可能危及公司的偿付能力和流动性。这不仅关系到公司债权人,也关系到剩余股东。我将详细阐述这种风险,以及债权人保护的补救措施如何缓和这种风险。然而,本文认为这种风险很少发生,因为对公司财务状况的影响将对基础交易产生威慑作用。这种风险最可能发生的情况是“要么做要么死”的交易和股东非理性行为的情况。对于这些情况,需要采取债权人保护的手段。评估救济、股东退出、民营企业少数股权保护、债权人保护
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