What are the consequences of an incorrect foundation of my company?
November 5, 2023 | 40,00 EUR | answered by Christian Ahlert
Dear Corporate Lawyer,
My name is Louis Bahr and some time ago I founded a company. Unfortunately, I recently found out that there were some mistakes made during the founding process. Now I am worried about the potential consequences of this faulty founding and would like to learn more about it.
The current situation is as follows: I founded the company to run a business and, among other things, I created the articles of association, registered the company in the commercial register, and completed the necessary formalities. However, I overlooked or made some important points incorrectly, such as the correct wording of the articles of association or compliance with legal regulations.
The current state is that the company is already founded and conducting business, but there is a risk that the faulty founding could have legal consequences. I am concerned about what consequences this could have for me as the founder and for the company.
My question to you as an expert in corporate law is: What specific consequences can a faulty founding of my company have and how can I possibly rectify or minimize them? Are there legal steps I can take to improve the situation and reduce potential risks?
Thank you in advance for your help and advice on this matter.
Sincerely,
Louis Bahr
Dear Mr. Bahr,
Thank you for your inquiry regarding the faulty establishment of your company. It is understandable that you are concerned about potential legal consequences and are looking for solutions to improve the situation.
A faulty establishment of a company can indeed have various legal consequences. Possible consequences include the nullity of company resolutions, invalidity of contracts, liability risks for the shareholders, or even the dissolution of the company. It is therefore important to identify and rectify the errors in order to reduce potential risks.
To improve the situation, I recommend that you promptly seek the advice of an experienced corporate lawyer. They can conduct a comprehensive analysis of the faulty establishment and provide you with specific course of action options. It may be necessary to make amendments to the articles of association, adjust formulations, or fulfill statutory requirements retroactively.
Depending on the nature and extent of the errors, various legal steps may be required. These may include convening a shareholders' meeting, amending the articles of association, adjusting contracts, or complying with legal regulations. Your lawyer can assist you in planning and implementing the necessary steps to minimize legal risks.
It is important that you take the matter seriously and act promptly to avoid potential legal consequences. With professional support, you can rectify the faulty establishment of your company and improve the legal situation.
I hope this information is helpful to you and I am available for any further questions you may have.
Sincerely,
Christian Ahlert
Corporate Lawyer
