Conclusion : chapter 17
| DOI | 10.10520/EJC74078 |
| Author | Christoph Jaehne |
| Published date | 01 January 2008 |
| Date | 01 January 2008 |
| Pages | 216-226 |
216
chapter 17
concLusion
In conclusion it can be said that within their socio-economic context
both Acts are brief and uncomplicated statutes. This can be stated
especially with regard to the CCA, which in an admirable and efficient
way bridges the gap between the necessary legal structures of an
industrial society and the abilities of a developing informal sector of
the ‘Rainbow Nation’.
The GmbH as well as the close corporation play an impor tant role in
their respective economies. The number of en tities incor porated as
GmbH and close corporation speaks for it self.
The rapid progression of the GmbH in the former East Germany is
another success story for this business entity.
The acceptance of the close corporation more than fulfilled the ex-
pectations. Since its introduction on 1 January 1985 its numbers until
31 July 2005 reached approximately 1,092,428 and are expected to
rise substantially in the future as well.
Both legal forms are easy to establish and administer and they are
especially suited for small and medium sized busi nesses. In particu-
lar, in case of the GmbH, however, even large business enterprises
often choose this legal form.
The two have in common not only the nearly same amount of statu-
tory regulations, 86 in the GmbHG compared to 83 in the CCA. How-
ever, briefness and simplicity have their price in that a number of
important questions are not dealt with in either Act. Therefore, it is
important to bear in mind that the regulations applicable are more
complex than reflected in the paragraphs and sections of the re-
spective Acts.
Not every aspect could be dealt with fully here and due to its com-
plexity sometimes is attended to in com pre hensive writings (e.g., ques-
tions of cession, groups, tax aspects). Therefore I often gave additional
references.
As shown, both Acts offer a wide variety of possibili ties for arranging the
legal entities according to the par ticular objectives of their respective
members.
Thus, the GmbH and the close corporation within their re spective
legal context provide alternative legal options for small and medium
sized business entities, giving them a simpler and less expensive
legal form, thus satisfying the need for flexibility while guaranteeing
liability limi tations and continuity. They offer an excep tion to the com-
plicated and expensive founding provisions and often com pulsory
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