Beware of internal group financing in times of crisis!

A recent decision by the Austrian Supreme Court (OGH) brings a further tightening of liability for loans granted by group companies in crisis. OGH extends refund claim for downstream loans against the controlling parent company of the group. The Supreme Court affirms the right to compensation for disadvantages within the Group in the case of vertical lending (downstream) beyond the wording of the Austrian Equity Capital Act (EKEG) and beyond the principles of the prohibition of return of deposits.

HEP Rechtsanwaelte Schillerstrasse Linz