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New Corporate Law: The offsetting contribution (no. 8)

New Corporate Law: The offsetting contribution (no. 8)

The new company legislation, which arrives into force on 1 January 2023, delivers lots of improvements. In our latest website series, we present these in element.

1 modify introduced about by the revised organization law considerations offsetting contributions. Right until now, it has been disputed irrespective of whether offsetting a contribution with non-recoverable receivables is possible. This report discusses which adjustments the revision will carry about from this stage of view and what this means in apply.

What is offsetting contribution?

The shareholder has a obligation to pay his contributions. The payment of the contribution can be made in several means: In funds (so-known as hard cash liberation), in form, in equity or by offsetting it versus a assert (so-identified as offsetting liberation).

In buy for the contribution to be made by offsetting, two opposing promises are necessary: The shareholder settles his contribution personal debt for shares subscribed by him (declare of the corporation versus him) with a pre-present declare which he has towards the company. Thus, its function speedily will become distinct. The function of payment by offsetting is the conversion of financial debt cash into fairness cash of a firm (also referred to as a “personal debt-equity swap”). From the firm’s stage of view, this is a pure legal responsibility swap debts (borrowed capital) are converted into equity. The belongings are not impacted.

Not like a income contribution, no new funds are injected into the firm. On the other hand, the company is relieved of liabilities, which improves the firm’s individual money.

The offsetting contribution can consider put in the context of the incorporation of a business (uncommon case), the subsequent payment of not nonetheless absolutely paid out-in contributions (rare situation) or on the celebration of a money raise (most regular situation).

What changes less than the new organization law?

The offsetting contribution has been all around for rather some time. In addition to various ambiguities, it was disputed for a very long time, between other items, no matter whether a established-off contribution is also possible in the scenario of non-recoverable promises, i.e., even if the statements of the collectors from the enterprise are no more time fully protected by the belongings of the business restricted by shares, i.e. the business is in excess of-indebted.

1. Offsetting contribution in all deposit payment cases

The new Art. 634a para. 1 CO states that the contribution could also be manufactured “by offsetting against a declare”. The explicitly said admissibility of the subsequent payment of a contribution by offsetting remains unchanged, but is now located in Art. 634b para. 2 revised CO. This clarifies that offsetting contribution is offered in all contribution situations.

2. Receivables that are not recoverable

Artwork. 634a para. 2 revised CO now also obviously states that “offsetting against a assert” also counts as “protect” if “the declare is no more time included by property”. This solutions the controversial problem of whether or not a receivable that is not recoverable can in basic principle be offset.

3. Article content of Association basis

Most likely the most substantial improve fears the foundation in the content of affiliation, as it is now laid down in Artwork. 634a para. 3 revised CO. It is now mandatory to incorporate offsetting contributions in the articles or blog posts of affiliation. As a result, the volume of the assert introduced for to be offset, the title of the shareholder and the shares issued for it must be stated. The typical meeting may well repeal the provisions of the article content of affiliation soon after ten several years.

The new Articles or blog posts of Affiliation basis was currently recognised in this kind for the contribution in sort and the acquisition in type and is now also applied for the offsetting contribution. In accordance to the new regulation, the posts of affiliation are to be designed obtainable cost-free of charge on the world wide web, which significantly improves the impact of publication in the content articles of association

The provisions on the penned accountability report of the founders or the board of directors on the existence and offsettability of the credit card debt stay unchanged. This report must be audited by a licensed auditor who ought to affirm in crafting that the report is total and suitable.


In theory, the alterations in the revision of enterprise legislation are stringent and to be welcomed. Only the Articles of Affiliation, which is manufactured freely accessible on the online, is very likely to have a deterrent effect. Nonetheless, it is justified especially with regard to the new possibility of offsetting non-recoverable claims on the just one hand and the protection of creditors on the other.