Cash Pooling From a Legal Perspective 2022 | Schwabe, Ley & Greiner | 21 September 2022 | TBA , Frankfurt

Tax and legal aspects when using cash pooling.

Group financing by "pooling" excess liquidity at a central point within a group of companies and balancing this liquidity in the group of companies are common practice and are being used more and more in medium-sized companies. All cash pooling systems have in common that they lead to economic advantages. However, given these advantages, the legal risks resulting from the operation of the cash pool are often overlooked. Tax limits and conditions are also often not sufficiently taken into account. The establishment of a cash pool, the corporate actions in such a pool and its effects are regular topics of discussion.
Practitioners are increasingly confronted with questions that require close interlinking of legal and tax aspects and, after a first look, hold significant potential for improvement - even with cross-border cash pooling.
The seminar deals with the legal situation in Germany.

Main topics:
• financing
• Self-financing in the group, intra-group loans
• Income tax treatment of self-financing and shareholder financing
• "Real" debt financing - civil law and tax bases
• Structuring under civil law
• Cash pooling involving corporations and partnerships
• Legal relationships between banks and corporations
• Legal limits (in particular raising and maintaining capital, equity replacement)
• Contractual basis, content and design of the contract
• International cash pool
• Cash pooling according to the GmbH reform (MoMiG)
• Liability risks
• Establishment, monitoring and termination from the point of view of the management of the companies involved
• Duties and liability risks for the management, liability bases
• Tax aspects
• General contract structure
• Role of the banks involved
• Guarantee concept
• Particularities

Group of participants:
Employees and executives who work in cash management or who are responsible for it and who are interested in the German legal situation on the subject of cash pooling, as well as corporate account managers from banks who want to get to know their customers' day-to-day business from their perspective

Goals:
The participants get to know the essential legal issues in connection with cash pooling. In addition to civil law issues, liability issues and tax aspects are also dealt with.

2022 Speakers

Dr. Georg Greitemann
Lawyer, Partner, P + P Pöllath + Partners

Dr. Marco Ottenwälder
Tax Advisor , Partner, P + P Pöllath + Partner