In a recent decision (OGH dated March 30, 2016, 6 Ob 35/16i), the OGH dealt with the question of the admissibility of agreeing on a right of subrogation in the partnership agreement, which, in the event of a shareholder’s insolvency, provided for and set a severance payment of half the market value It is also generally stated that social contractual rights that provide for a severance payment below the market value must always withstand an immorality test, otherwise such regulations are void.

Assumption rights are regulations which enable those entitled to take over the business shares of one or more shareholders if specifically defined conditions occur. These days they represent standard regulations in corporate law practice and can be found in the vast majority of current partnership agreements of companies with a multi-person shareholder structure.

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