Cash pooling from a legal perspective

Tax and legal aspects of the use of cash pooling

Dates & Place

22.05.2024 in Frankfurt
27.11.2024 ONLINE

Level

Special knowledge

Duration

1 day

Costs

EUR 1.650,- plus VAT.

Speakers
Dr. Georg Greitemann

Dr. Georg Greitemann

Lawyer & Partner

Pöllath + Partners

Dr. Marco Ottenwälder

Dr. Marco Ottenwälder

Tax consultant & partner

Pöllath + Partners

Content

Group financing by "pooling" excess liquidity at a central point within a group of companies and balancing this liquidity within the group of companies is common practice and is being used more and more in medium-sized companies as well.

What all cash pooling systems have in common is that they lead to economic benefits. However, in view of these advantages, the legal risks resulting from the operation of the cash pool are often misjudged. Tax limits and conditions are also often not given sufficient consideration. The establishment of a cash pool, corporate actions in such a pool and its effects are regular topics of discussion.

Practitioners are increasingly confronted with issues that require close integration of the legal and tax aspects and, at first glance, hold substantial potential for improvement - even in the case of cross-border cash pooling.

The seminar deals with the legal situation in Germany.

Main topics

Basics

  • What are the tasks of the cash manager in the company?
  • What are the minimum standards to be taken into account in the organizational structure & process organization?
  • What are the differences in the accounting or treasury perspective? Which business management approaches do you need to understand?
  • What are the requirements vis-à-vis banks?
  • What are the current trends in cash management for large and small companies?

Funding

  • Intragroup financing, intragroup loans
  • Income Tax Treatment of Equity Financing and External Shareholder Financing
  • "Real" debt financing - civil law and tax principles

Civil law structuring

  • Cash pooling involving corporations and partnerships
  • Legal relations between banks and groups
  • Legal limits (esp. raising and maintaining capital, equity replacement)
  • Contractual basis, contract content and design
  • International cash pool
  • Cash pooling after the GmbH reform (MoMiG)

Liability risks

  • Establishment, monitoring and termination from the perspective of the management of the participating companies
  • Duties and liability risks for the management, bases of liability

Tax aspects

  • General contract structure
  • Role of the banks involved
  • Guarantor concept
  • Special features

Group of participants

Employees and managers who work in or are responsible for cash management and are interested in the German legal situation regarding cash pooling, as well as corporate account managers from banks who want to learn about their customers' day-to-day business from their perspective.

Targets

Participants will learn about the main legal issues related to cash pooling. In addition to civil law issues, liability issues and tax aspects will also be covered.

Feedback from our customers

Legal and tax aspects were perfectly conveyed through the presentation and discussion with the participants.

Do you have any questions?

Marc Baumgärtner

Marc Baumgärtner

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