Common use of Profit and loss transfer Clause in Contracts

Profit and loss transfer. (1) The entire profit for the year that would be shown in the financial statements of the Intermediate Holding Company if there were no profit and loss transfer agreement shall be transferred to the Shareholder after the end of the financial year to the extent that such amount exceeds any loss carried forward. (2) The Intermediate Holding Company may only allocate part of the profit for the year to other retained earnings where this is justified by reasonable business judgment. (3) During the term of the Agreement, the Shareholder shall compensate for any loss for the year generated by the Intermediate Holding Company to the extent that such losses are not offset by amounts withdrawn from retained earnings posted during the term of the Agreement. The loss for the year shall not include any run-off losses. Section 302 para. 3 of the German Stock Corporation Act (AktG) shall apply accordingly.

Appears in 6 contracts

Samples: Profit Transfer Agreement, Profit Transfer Agreement, Profit Transfer Agreement

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