The shareholders of a German limited liability company (GmbH) hold their shares in the
company and have control over the central decisions of the company. It is their innovative and
economic ideas that shape the company’s business activities in the long term. In a sense, they
form the heart of the company. The effects can be even more devastating if disputes arise
among the shareholders.
What does the shareholder dispute mean for the GmbH and its shareholders?
The purpose of the limited liability company is already to facilitate the competitive entry of a
small group of business owners with a common idea. This is reflected in the combination of
limited liability of the company on the one hand and control of the company’s management by
the shareholders as its owners on the other hand.
While the second aspect in particular represents a significant advantage over other legal forms in the initial stages of the company, because a common vision is euphorically pursued, numerous problems can arise from this over time. In the end, crises, changes in the business world or even a personal change of individual shareholders can lead to disputes developing in the original group of
businesspersons with a common plan, so that people are no longer pulling in the same
direction.
