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German law: Company Law

Section 20 Default interest. Section 21 Forfeiture. Section 22 Liability of legal predecessors. Section 23 Auction of share. Section 24 Raising shortfalls. Section 25 Mandatory provisions. Section 26 Obligation to pay additional contributions.

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Section 27 Unlimited obligation to pay additional contributions. Section 28 Limited obligation to pay additional contributions. Section 29 Appropriation of earnings. Section 30 Capital maintenance.

Section 31 Reimbursement of prohibited repayments. Section 32 Repayment of profit. Section 32a repealed.

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Section 32b repealed. Section 33 Purchase of own shares. Section 34 Collection of shares. Part 3 Representation and management. Section 35 Representation of company. Section 35a Required particulars in business letters. Section 36 Targets and deadlines in respect of equal participation of women and men.

Section 37 Restrictions on power of representation.

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Section 38 Revocation of appointment. Section 39 Registration of directors. Section 40 List of shareholders, authorisation to issue statutory instruments. Section 41 Book-keeping. Section 42 Balance sheet. Section 42a Presentation of annual financial statements and management report.

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Section 43a Granting of credit from company assets. Section 44 Deputies to directors. Section 45 Rights of shareholders. Section 46 Duties of shareholders. Section 47 Voting. Section 48 Meeting of shareholders. Section 49 Convocation of meeting. Section 50 Minority rights. Section 51 Form of convocation.

Section 51a Right to information and right of inspection. Section 51b Court decision on right to information and right of inspection. Section 52 Supervisory board. Part 4 Amendments to articles of association. Section 53 Form of amendment to articles of association.

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Section 54 Application for registration and entry of amendment to articles of association. Section 55 Increase in share capital. Section 55a Authorised capital. Section 56 Capital increase with contributions in kind. Section 56a Payments towards new share capital.

Section 57 Application to register increase. Section 57a Refusal to make entry. Section 57b repealed.


Section 57c Capital increase from company funds. Section 57d Entry of capital reserves and retained earnings. Section 57e Taking last annual balance sheet as basis; audit. Section 57f Requirements of balance sheet. Section 57g Advance notice of annual financial statements.

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Section 57h Types of capital increase. Section 57i Registration and entry of resolution to increase share capital. Section 57j Allocation of shares. Section 57k Partial rights; exercise of rights.

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Section 57l Participation in increase in share capital. Section 57m Relation between rights; relationships to third parties. Section 57n Profit share of new shares. Section 57o Purchase costs. Section 58 Reduction in share capital. Section 58a Simplified capital reduction. Section 58b Amounts from release of reserves and capital reduction. Values of principal capital shall be twenty five Turkish Liras and multiples of it.

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Value of principal capital shares are paid in cash or in kind or by exchanging a receivable or as in capital increase by conversion of freely utilized equity into principal capital as set forth in the articles of association. The acquisition of the right and title of partnership can be in two different ways in case of a LLP: original acquisition and acquisition by transfer. Original acquisition is the proceeding of entitling as "first hand" without seeking for transfer and transition of right and title of partnership.

In addition, original acquisition occurs by registration during change of company type and merger. As a general rule, share of principal capital shall be transferred in LLPs. Founders shall facilitate the transfer by drawing up the provisions in articles of incorporation related to share transfer freely [5]. However, it is possible to make the transfer of share more difficult by an article in the articles of association, when establishing non-public limited partnership is aimed.

Transfer of principal capital share in LLP is regulated under Article as follow; " Unless otherwise indicated in the articles of association, approval of general assembly is required for transfer of principal capital. Transfer becomes valid upon this approval ". While the term of "unless otherwise mentioned" in the Article is drawn attention, otherwise shall be determined [7] with articles of association and transfer shall be made differently than specified by law.

As it is seen, legislator sets forth requirement form and necessitates the registration to trade registry with the approval of the particular majority of other partners. Same form requirements are needed for promissory and dispositive transactions regarding the transfer of principal capital share [8].