• Upstream Securities and Financial Assistance in Germany
  • August 7, 2013 | Authors: Thorsten H. Stuecklin; Jüergen van Kann
  • Law Firm: Fried, Frank, Harris, Shriver & Jacobson LLP - Frankfurt am Main Office
  • German law provides strict rules regarding the ability of a company and its subsidiaries to provide financial assistance for the acquisition of its own shares. In particular, the grant of security interests over the company’s or its subsidiaries’ assets as collateral to a third party (i.e. pledging of bank accounts, security transfer of assets, share pledges over the subsidiaries’ shares, etc.) is regarded as financial assistance.