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In the world of corporate financing, there are many instruments available that can provide flexibility and security for both capital providers and companies. One particularly interesting but often overlooked instrument is the profit-sharing loan (also known as a participating loan). This type of loan offers opportunities for companies seeking risk capital while also providing lucrative returns for investors. However, despite the advantages, it's essential to be aware of the tax pitfalls that can arise, especially when loans are granted by related parties.

In every capital increase, the percentage ownership of existing shareholders is at stake. Fortunately, thanks to statutory subscription rights, you are generally protected from both voting power and capital dilution?

Employee stock ownership plans (ESOPs) are a popular tool for retaining talent and boosting motivation by giving employees a direct stake in the company’s success. While the focus often lies on the tax advantages of such plans, the legal aspects related to employment law must not be overlooked. One particularly crucial issue is whether an employee stock plan qualifies as part of an employee’s salary. The legal implications in such cases can be significant.

In financially challenging times, a startup's board must closely monitor liquidity, implement restructuring measures as needed, maintain strong investor communication, and ensure compliance with tax and social security obligations to minimize legal risks.

Liquidation Preferences play a crucial role in start-up investments, as they protect investors from financial losses while also influencing the motivation of the founding team. A balanced relationship between investor security and incentives for management is essential for the long-term success of a company.

Does your company need general terms and conditions and if so, for which business relationships? Or are individual contracts better, or even both? The following article explores these questions.