START-UP–NEWS

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Transfer restrictions in the articles of association of Start-Ups

When founding a limited liability company, the establishment of articles of association is mandatory. In these articles of association extensive rights and obligations of the shareholders including change-of-control clauses or clauses concerning pre-emption rights and rights of assignment, can be regulated.

In accordance with the wishes of the shareholders such transfers may be subject to approval rights of the other shareholders. An unpleasant partner can be prevented by the existing shareholders. Hence, corresponding regulations in the articles of association are of crucial importance. Nevertheless, they should be negotiated carefully with start-ups and adapted according to the company’s growth plan.

Recently, I was mandated by two groups of invesetors with regard to two different start-ups. Both companies are still in an early-stage phase with a relatively low company valuation. Due to a large number of already existing direct and indirect national and international investors the clauses in the two articles of association proved to be exaggerated and disadvantageous for the shareholders.

The complex rules in the articles of association caused disproportionate transaction costs which consequently reduced the company valuation.

Hence, articles of association should be proactively adapted step-by-step to the respective growth phase of the company.

MiFID-2 AND CROWDFUNDING

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MiFID-2 AND CROWDFUNDING

In contrast to financial services, which with MiFID and now MiFID 2 are subject to a uniform regulation under European law, the area of crowdfunding continues to be subject to local regulations in the Member States. The operation of cross-border platforms therefore entails legal risks and high costs. On the basis of a proposal by the European Commission, crowdfunding service providers are now to be expressly exempted from the obligations of the MiFID 2 Directive.

The amendments are to be welcomed in principle. However, it should be ensured that the information provided by the Commission on the risks associated with crowdfunding, the disclaimers and the knowledge test are sufficient to deny civil liability.

For further information: GL@GEORGESLESER.COM

https://ec.europa.eu/info/publications/180308-proposal-crowdfunding_en

 

 

FinTech – Regulatory Sandboxes

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FinTech

The European Commission is convinced that Europe’s financial markets will be more integrated, safer and easier to access thanks to steps mapped out by the Commission in its FinTech action plan. According to the Commission the plan shall help the financial industry to make use of the rapid advances in technology such as blockchain and other IT applications and strengthen cyber resilience. Consumers, investors, banks and new market players shall benefit.

Based on specific guidelines of the European Financial Market Authorities the European Commission will provide a plan for Fintechs with regulatory sandboxes.

A regulatory sandbox is a regulatory framework that enables FinTech start-ups and other innovators to conduct live experiments in a controlled environment under the supervision of a regulator. Regulatory sandboxes are gaining popularity, especially in the developed financial markets.

For further information: GL@GEORGESLESER.COM

https://ec.europa.eu/info/publications/180308-proposal-crowdfunding_en

#crowdfunding #mifid2 #georgesleser

Limitation PERIOD IN INVESTMENT PROCEEDINGS (German Language)

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Limitation PERIOD IN INVESTMENT PROCEEDINGS (German Language)

Bei Beratungsfehlern in Bezug auf Veranlagungs- bzw Finanzierungskonzepte, die eine Kombination von Fremdwährungskrediten mit verschiedenen Tilgungsträgern vorsehen, ist nach gesicherter Rsp des OGH für den Beginn der Verjährung entscheidend, zu welchem Zeitpunkt der Geschädigte die Risikoträchtigkeit des Gesamtkonzepts erkennt, ihm also bewusst ist, dass das Gesamtkonzept den erweckten Erwartungen oder den Zusagen nicht entsprochen hat. Dies ist dann der Fall, wenn der Anleger vor Augen geführt erhält, dass das von ihm gewählte Veranlagungsmodell – aufgrund der tatsächlichen Entwicklungen von Wechselkurs und Tilgungsträgern – nicht oder nicht im zugesagten Ausmaß risikolos ist.

In case of questions: GL@GEORGESLESER.COM

(c) LexisNexis, Sabine Kriwanek, Barbara Tuma, OGH 26. 1. 2018, 8 Ob 150/17t