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von Göler (Hrsg.) / / § 58d

§ 58d Distribution of profits

(1) Profits may be distributed before the end of the fifth financial year which begins after the capital reduction resolution is passed only if the capital reserves and retained earnings together amount to 10 per cent of the share capital. Share capital is deemed to be the nominal value resulting from the reduction in capital, but at least the minimum nominal value permissible in accordance with section 5 (1).

(2) Payment of a share in the profits of more than four per cent is permissible only for a financial year which begins later than two years after the capital reduction resolution is passed. This does not apply if those creditors whose claims were established before entry of the resolution was made known are satisfied or indemnified, insofar as they contacted the company in that regard within six months after publication of the annual financial statements on the basis of which a decision on the distribution of profits was taken. Those creditors need not be satisfied who, in the event of insolvency proceedings being opened, have a right to preferential satisfaction from a state-supervised covering fund created in accordance with a statutory provision for their protection. The creditors’ attention is to be drawn to such satisfaction or indemnification in a separate declaration which is to be forwarded electronically to the agency responsible for keeping the Business Register together with the annual financial statements for inclusion in the Business Register.

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