Common Contracts
1 similar Profit and Loss Transfer Agreement contracts
Profit and loss transfer agreementProfit and Loss Transfer Agreement • May 31st, 2021
The Subsidiary undertakes to transfer its entire profit – with the exception of retained profits brought forward prior to the Agreement – to the Parent after the fiscal year-end. Subject to the recognition or reversal of reserves pursuant to para. 2 and para. 3, total net income for the fiscal year before the profit transfer, reduced by any accumulated losses brought forward from the previous year under German commercial law and by the amount required to be appropriated to legal reserves or reserves provided for by the Articles of Association and subject to a restriction on distribution pursuant to Section 268 (8) of the German Commercial Code (Handelsgesetzbuch, HGB), shall be transferred. Section 301 of the German Stock Corporation Act (Aktiengesetz, AktG) shall apply mutatis mutandis.
