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Glossary entry

German term or phrase:

endgültige Vermögensverschiebung

English translation:

ultimate transfer of assets

Added to glossary by Louise Mawbey
Oct 16, 2023 20:42
7 mos ago
28 viewers *
German term

endgültige Vermögensverschiebung

German to English Law/Patents Finance (general) Articles of Association
Hello all,

I'm having problems finding the right term for this.
It comes in the articles of association of a GmbH.

In addition to paying for its share, one particular shareholder is to pay a specified additional amount into the company's capital reserves. This is not to result in "eine endgültige Vermögensverschiebung" in favour of the other shareholders.

Thanks in advance
Proposed translations (English)
4 the assets must not ultimately be transferred...
5 A decisive shift in assets
4 once-and-for-all (peremptory) capital structure re-arrangement
3 definitive transfer of assets
Change log

Oct 16, 2023 21:19: writeaway changed "Field" from "Law/Patents" to "Bus/Financial"

Oct 16, 2023 21:20: writeaway changed "Field" from "Bus/Financial" to "Law/Patents"

Oct 16, 2023 21:21: writeaway changed "Field (write-in)" from "(none)" to "Articles of Association"

Discussion

Andrew Bramhall Oct 17, 2023:
Agree with Steve Robbie And Björn and Phil are probably right when they suggest that the scenario in question is an implied transfer of assets between shareholders that constitutes a taxable gift.
Marion Linssen Oct 17, 2023:
Romain/Byrd/Thielecke Dictionary of Legal Terms also states transfer of assets.
Backed by the following examples:
The case law of various national courts in Europe illustrates that the Liechtenstein private foundation in particular has drawn suspicion in recent years. There is the general suspicion that it facilitates the wrongful transfer of assets, leading to courts stripping the foundation of its legal capacity.
Nur so kann auch sichergestellt werden, dass bei der Bemessung der Höhe einer zu verhängenden Geldbuße die reale Wirtschaftskraft des gesamten Unternehmens zutreffend berücksichtigt wird und dass die Vollstreckung der Geldbuße nicht aufgrund etwaiger Vermögensverschiebungen zwischen der Muttergesellschaft und ihren Tochtergesellschaften in ihrem Erfolg gefährdet wird. = Only in that way can it also be ensured that, when assessing the amount of a fine to be imposed, the true economic strength of the whole undertaking is correctly taken into account and that the successful enforcement of the fine is not jeopardised by any transfers of assets between the parent company and its subsidiaries.
https://eur-lex.europa.eu/legal-content/en/TXT/HTML/?uri=ecl...
Louise Mawbey (asker) Oct 17, 2023:
Thanks for all the input. It was a great help.
Steve Robbie Oct 17, 2023:
And Björn and Phil are probably right when they suggest that the scenario in question is an implied transfer of assets between shareholders that constitutes a taxable gift.

<Added>: In fact Louise has already confirmed that.
Anna Wright Oct 17, 2023:
Indeed, the generic meaning is 'ultimate transfer/reallocation of assets/capital'. The precise EN equivalent term, and specification of the Vermögen not being verschiebt, depends on the context.
Björn Vrooman Oct 17, 2023:
"Beispiel: A und B sind zu jeweils 50 % an der C-GmbH beteiligt. Im Rahmen der Gewinnverwendung wird beschlossen, dass 50 % des Gewinns in eine personenbezogene Gewinnrücklage des A eingestellt werden. 50 % des Gewinns werden zur Ausschüttung zur Verfügung gestellt und im Anschluss inkongruent an B ausgeschüttet. Durch diese Gestaltung wird eine Verschiebung von Gewinnen zwischen A und B ausgeschlossen, sodass keine schenkungssteuerlichen Fragen aufgeworfen werden. Eine endgültige Vermögensverschiebung zwischen A und B findet auf der Gesellschafterebene findet nicht statt."
https://blog.otto-schmidt.de/gesellschaftsrecht/2023/02/07/i...

Not a tax guy, so genuine question: Are we still talking about assets here or income?

Else, I often saw the word in connection with Darlehen/loans, where the only source of potential interest was this one (where it says "transfer of capital"):
https://scholarship.law.duke.edu/cgi/viewcontent.cgi?referer...

Best

PS
Else, I can only come up with (re)distribution of (assets), though I'm not sure how well that works.
Björn Vrooman Oct 17, 2023:
Thrice agree with... ...transfer of/transferred; not sure about "endgültig."

A "Vermögensverschiebung" is essentially the same as a "Vermögensübertragung":
https://gmbh-gf.de/der-fall-schlecker-vorsicht-bei-vermogens...

I also agree with Andrew, though, that this is a standard German compound used in a variety of contexts, which means that (in German, at least) the word doesn't have a special meaning. It's also used in relation to inheritance, for example, and that's where you can find an explanation of "endgültig":
"Abgeschlossen ist ein Zuwendungsvorgang erst mit der Ausführung der Zuwendung i.S.v. § 9 Abs. 1 Nr. 2 ErbStG. Erst dann ist die Vermögensverschiebung im steuerlichen Sinne endgültig."
https://www.haufe.de/recht/deutsches-anwalt-office-premium/3...

It's not temporary in this case and it "actually happened," which is why I'd suggest something such as "does not constitute an actual transfer of..." in the context given.

What I'm a bit flummoxed by is "Vermögen," for the following reason:

[...]
AllegroTrans Oct 17, 2023:
@ AB "Capital structure re-arrnging is good" (sic) NO, it isn't - because I said "capital structure re-arrangement" - not "re-arrnging".
You are so quick off the mark to snipe that you can't even accurately repeat the words you purport to criticise.
Andrew Bramhall Oct 17, 2023:
@Allegro: " Capital structure re-arrnging is good" ...er no, it isn't; " capital restructuring" quite simply. But then, when does AMM ever say in two words what you can say in six??
Andrew Bramhall Oct 17, 2023:
AMM' " extrapolation"completely off-beam yet again "Needless to say, endgültig is once-and-for-all, definitve or peremptory,( 'definitive,' yes, the other two, no) rather than decisive (maßgeblich or maßgebend)( these mean 'relevant', in the sense of 'authoritative') and 'shifting' is incongruous journalistic or colloquial usage"???? Really?? No, the only incongruity around here is AMM's understanding of the word ' shifting', which is a word which doesn't even appear here. What does appear in my version is the noun ' shift', not the adjectival gerund. And nowhere in the given context is there any mention of any financil restructuring or re-arranging.
Louise Mawbey (asker) Oct 17, 2023:
Thanks to all of you for your input so far. Yes, the context that philgoddard gave is implied.
Andrew Bramhall Oct 17, 2023:
"Entscheidend" oder "Ausschlaggebend"? Entscheidend ist, dass die Leistung des Gesellschafters nicht zu einer endgültigen Vermögensverschiebung zugunsten der Mitgesellschafter führt.

It is vital that shareholders' actions don't lead/ contribute to a decisive shift in assets in favour of fellow shareholders.

It seems pretty straightforward to me.
Louise Mawbey (asker) Oct 17, 2023:
Thanks to all of you for your input so far. Yes, the context that philgoddard gave is implied.
philgoddard Oct 17, 2023:
I think this is the context:
Entscheidend ist, dass die Leistung des Gesellschafters nicht zu einer endgültigen Vermögensverschiebung zugunsten der Mitgesellschafter führt.
http://datenbank.nwb.de/Dokument/1021484/

The shareholder is making an additional contribution without receiving extra shares in return. This may constitute a taxable gift to the company.
I think it may mean that the other shareholders mustn't benefit from the gift.
Andrew Bramhall Oct 16, 2023:
Surely no need for any further context! Louise has already given the surrounding context, and taken the trouble to translate it, just leaving three words in the ST whose meaning is crystal clear, though there are doubtless different ways to say it.

In addition to paying for its share, one particular shareholder is to pay a specified additional amount into the company's capital reserves. This is not to result in "a decisive shift in assets/wealth" in favour of the other shareholders.
philgoddard Oct 16, 2023:
You're not breaching confidentiality by giving us the context. You can hide the name of the company if necessary.
Louise Mawbey (asker) Oct 16, 2023:
I'm sorry but that's not possible due to confidentiality reasons.
AllegroTrans Oct 16, 2023:
Asker Please post the full sentence in German

Proposed translations

16 hrs
Selected

the assets must not ultimately be transferred...

... to the other shareholders.

My reference in the discussion box, which includes the full German context, explains that the additional contribution must remain within the company. If it's distributed to shareholders, it might constitute a gift on which they have to pay tax.
Peer comment(s):
neutral Anna Wright : yes, this is the effective sense too
9 mins
neutral Andrew Bramhall : That is the upshot, but NOT the translation of the term asked; but fully agree with your explanation.
2 hrs
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks to everyone, including those who posted the very helpful comments in the discussion section. I chose a combination of Phil and Anna's answers and Phil was a couple of minutes faster ;)"
5 mins

A decisive shift in assets

A definitive transfer of assets/wealth (to the other shareholders)
Peer comment(s):
neutral writeaway : excellent references to back so much confidence
1 hr
Sarcasm is the lowest form of wit.
neutral philgoddard : I think your second version is on the right lines, except for your translation of 'endgültig'.
8 hrs
What does it matter? Perhaps you'd better agree with AMM's far more succinct and idiomatic ( but totally incorrect) answer? (LOL)
neutral Anna Wright : definitive transfer of assets
16 hrs
Nope, not for me, sorry;
neutral AllegroTrans : "Shift" is too casual/journalistic // pure coincidence, I didn't see what you are referring to
22 hrs
Strange that! Adrian said the same below.
Something went wrong...
2 hrs

once-and-for-all (peremptory) capital structure re-arrangement

Needless to say, endgültig is once-and-for-all, definitve or peremptory, rather than decisive (maßgeblich or maßgebend) and 'shifting' is incongruous journalistic or colloquial usage.

I agree that Articles of Assoc. is used for a GmbH, rather than - as we all remember to look out for - Articles of Partnership for a Personen- or Kommanditgesellschaft.

Capital reserves or reserve : the latter suggests in BrE: company AmE: corporate law an undistributable reserve, as opposed to reserve capital that is drawable (is a trick exam question).
Example sentence:

When a firm has debt outstanding, in the absence of a prior arrangement to protect its bondholders, stockholders may rearrange the firm's capital structure to transfer wealth belonging to the firm's creditors to themselves.

Reference:

http://www.semanticscholar.org/paper/CAPITAL-STRUCTURE-REARRANGEMENTS-AND-ME-FIRST-RULES-Kim-Mcconnell/bb7ebc70052e133e709490dad58fd3c83538d

http://maximosecrets.com/2022/09/02/asset-moves-and-asset-swaps-2/

Peer comment(s):
neutral AllegroTrans : "capital structure re-arrangement" is good, but not your adjectival
10 hrs
Something went wrong...
16 hrs

definitive transfer of assets

said shareholder's additional capital investment will not result in the legal transfer (movement/reallocation) of assets to other partners

--------------------------------------------------
Note added at 16 hrs (2023-10-17 12:55:16 GMT)
--------------------------------------------------

See further explanation here:
'A. Systematische Stellung: Vermögensverschiebungen gehören neben den Buchführungs- und Bilanzdelikten von ihrer Handlungsform her zum Kern des Insolvenzstrafrechts. Sie hatten aber in der Praxis früher kaum Bedeutung, da sie zumeist bei GmbHs vorkommen, wo sie nach der früheren Rechtsprechung des BGH idR nur alsUntreue strafbar waren (vgl zur nunmehrigen Situation § 77 Rn 31a und untenRn 2). Sie liegen vor, wenn der Unternehmer Teile seines Vermögens, die im Falle einer Insolvenzverfahrenseröffnung zur Masse gehören würden,dem Zugriff der Gläubiger entziehtoder diesen Zugriffwesentlich erschwert, ohne der Masse einen adäquaten Gegenwert zukommen zu lassen 1. Handelt er dabei in der Krise (Überschuldung oder drohende oder eingetretene Zahlungsunfähigkeit), so ist der Tat bestand des § 283 Abs 1 Nr 1 StGB erfüllt. Führt er durch die Vermögensverschiebung die Krise herbei (Überschuldung oder eingetreteneZahlungsunfähigkeit), so ist die Strafbarkeit nach § 283 Abs 2 StGB gegeben'

https://www.degruyter.com/document/doi/10.9785/ovs.978350438...
Reference:

https://context.reverso.net/%C3%BCbersetzung/deutsch-englisch/Verm%C3%B6gensverschiebung

Peer comment(s):
neutral philgoddard : Andrew has already suggested this, but I don't agree with 'definitive'.
24 mins
Yes, I saw it after, sorry. 'definitive' also has the sense of legally binding in EN. Hard to know for sure without seeing the source document. 'Ultimate/eventual' matches the DE source.
neutral Steve Robbie : Your explanatory text concerns misappropriation of assets from a company that goes insolvent, so it isn't relevant. But the translation you suggest is reasonable - definitive transfer of assets/capital/wealth
1 hr
yes, the term arises often in the regulatory contexts of corporate insolvency, money laundering, etc., but simply means 'shift' or 'transfer of assets'.
neutral Andrew Bramhall : Even though I suggested it as an option, it actually doesn't fit here.
2 hrs
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