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Germany Federal Court of Justice, 20 January 1983

Germany Federal Court of Justice
20 January 1983—II ZR 243/81, NJW 1983, 1910 (1983)

Written by Curtis Parvin, JD

Facts

A Corporation (defendant) had four shareholders and was in the business of machinery-equipment production. The four shareholders of A Corporation were also the sole shareholders of B Corporation, which also produced machinery equipment. The four shareholders agreed that A Corporation could invest in other businesses if the other business did not conflict with B Corporation’s business. At a shareholders’ meeting of A Corporation, three shareholders voted in favor of a resolution to have A Corporation invest in another company that was a competitor of B Corporation. The dissenting shareholder (plaintiff) sued, arguing that the shareholder vote violated the terms of the agreement among the shareholders. [Editor’s Note: The Germany Federal Court of Justice is Germany’s highest civil and criminal jurisdiction court.]

Rule of Law

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Issue

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Holding and Reasoning (Per curiam)

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