When disputes between shareholders escalate, one of the shareholders may be tempted to transfer the business to a new entity. Can the shareholder be stopped if he succeeds in obtaining a majority vote? THE FACTS: In a recent Austrian case, shareholder A (47.5%), sold the assets of a company with limited liability (GmbH) shortly after…

How far-reaching is the concept that “any person” who suffered cartel-related damages is entitled to claim compensation? Can public institutions who subsidized market participants also recover their losses from the cartel members? The Austrian Supreme Court asks the European Court of Justice (ECJ) for clarification. ELEVATOR CARTEL Civil liability cases stemming from the so-called elevator cartel…

In a high-profile case of global interest, the Austrian Constitutional Court ruled on the Squeeze Out Act (the “Act”)  that was introduced in 2006. The Act, on its face, permits a squeeze-out of minority shareholders by shareholders holding at least 90% of the shares. Conspicuously over and above the EU requirements on squeeze-outs in takeovers, under…

  In a recent article, published in Dispute Resolution magazine, Bettina Knoetzl highlights the importance of the cooperation between clients, legal representatives and litigation PR experts with all involved players when the media is present in the courtroom. The presence of the media and therefore the immediate publicity surrounding an ongoing legal battle leads to…

Director’s liability is a recurring issue in both the Austrian and German courts. One reason is that, when a company goes into bankruptcy, its receivers and creditors tend to look for alternative sources of funds, especially when the directors are covered by D&O Insurance. In this Austrian case, a buyer of equipment from a company that…