# German — Corporate / M&A / JV / Resolutions / POA Sub-Lexicon

Unified German-to-English mapping covering M&A documents, joint ventures,
shareholders' agreements, shareholder loans, corporate resolutions and corporate
governance (including the German two-tier board structure), and powers of attorney
/ Vollmacht / Prokura / proxies.

For substantive English vocabulary and drafting notes, see
`references/corporate-ma-jv.md`.

## Core M&A Document Terms

| German | English |
|---|---|
| Anteilskaufvertrag (GmbH) | share purchase agreement (SPA) |
| Aktienkaufvertrag (AG) | share purchase agreement (SPA) |
| Unternehmenskaufvertrag / Asset Deal | asset purchase agreement / business transfer agreement |
| Gesellschaftervereinbarung | shareholders' agreement (SHA) |
| Gesellschafterdarlehen | shareholder loan |
| Übertragungsurkunde | transfer deed / transaction deed |
| Offenlegungsschreiben / Disclosure Letter | disclosure letter |
| Garantien des Verkäufers | seller's representations and warranties |
| Freistellung / Schadloshaltung | indemnity / indemnification |
| Kaufpreisanpassungsklausel | price adjustment clause |
| Kaufpreis | purchase price |
| Gegenleistung | consideration |
| Aufgeschobene Gegenleistung | deferred consideration |
| Earn-Out / Besserungsschein | earn-out |
| Anzahlung | deposit |
| Vollzugstag / Closing | completion (UK) / closing (US) |
| Unterzeichnungstag / Signing | signing / exchange |
| Vollzugsbedingungen | conditions to closing (US default) / conditions to completion (UK) |
| Zwischenzeitraum / Interim Period | interim period |
| Pflichten im Zwischenzeitraum | interim covenants |
| Wesentliche nachteilige Änderung (MAC) | material adverse change clause |
| Due Diligence / Sorgfältige Prüfung | due diligence |
| Datenraum | data room |
| Absichtserklärung / Letter of Intent (LOI) | letter of intent (LOI) |
| Grundsatzvereinbarung / Memorandum of Understanding (MoU) | memorandum of understanding (MOU) |
| Verbindliches Angebot | binding offer |
| Unverbindliches Angebot / Indikatives Angebot | non-binding offer / indicative offer |

## Price Mechanism (M&A)

| German | English |
|---|---|
| Locked-Box / Festkaufpreis | locked-box pricing |
| Closing-Accounts-Mechanismus | completion accounts mechanism |
| Nettofinanzverbindlichkeiten / Nettoverschuldung | net debt / net financial position |
| Working Capital / Nettoumlaufvermögen | net working capital |
| Working-Capital-Zielwert | target working capital |
| Kaufpreisanpassung | price adjustment |
| Unabhängiger Sachverständiger / Schiedsgutachter | independent expert / expert determiner |
| Verbindliche Feststellung | binding determination |

## Warranty Claim Limitations (M&A)

| German | English |
|---|---|
| Bagatellgrenze / De-minimis-Schwelle | de minimis (per claim threshold) |
| Freigrenze / Aufgriffsschwelle | basket / threshold |
| Selbstbehalt / Excess Basket | excess basket / deductible |
| Tipping Basket | tipping basket |
| Haftungshöchstbetrag / Cap | cap |
| Verjährungsfrist (vertraglich) | contractual limitation period |
| Ausschlussfrist | time limit / survival period |
| Schadensminderungspflicht | duty to mitigate |
| Anzeigepflicht (Anspruch) | notice of claim obligation |
| Drittansprüche / Drittrückgriff | third-party recovery |

## Escrow and Holdback

| German | English |
|---|---|
| Treuhandkonto / Escrow-Konto | escrow account |
| Treuhandbetrag | escrow amount |
| Treuhänder / Escrow-Agent | escrow agent |
| Treuhandvereinbarung / Escrow-Vereinbarung | escrow agreement |
| Kaufpreiseinbehalt / Holdback | holdback |
| Freigabe des Treuhandbetrags | release of escrow |
| Freistellungs-Holdback | indemnity holdback |

## Tax-related M&A Terms (interface)

For substantive tax vocabulary, see `references/taxes.md` and the German tax
sub-lexicon `german-taxes.md`.

| German | English |
|---|---|
| Steuergarantien | tax warranties |
| Steuerfreistellung / Steuerklausel | tax indemnity / tax covenant |
| Veranlagungszeitraum vor Vollzug | pre-closing tax period |
| übergreifender Veranlagungszeitraum | straddle period |
| Steuerneutralität der Transaktion | tax neutrality of the transaction |
| Step-up / Aufstockung der Buchwerte | step-up in basis |
| steuerlicher Buchwert | tax basis |
| steuerliche Verlustvorträge | tax loss carry-forwards |
| Übernahme des Steuerrisikos | assumption of tax risk |

## SHA and Shareholder Loan Terms

| German | English |
|---|---|
| Vorkaufsrecht | right of first refusal / pre-emption right |
| Vorerwerbsrecht | right of first offer (ROFO) |
| Mitveräußerungsrecht / Tag-Along | tag-along right |
| Mitveräußerungspflicht / Drag-Along | drag-along right |
| Veräußerungssperre / Lock-Up | lock-up provision |
| Wettbewerbsverbot | non-compete clause |
| Abwerbeverbot | non-solicitation clause |
| Kaufoption / Call-Option | call option |
| Verkaufsoption / Put-Option | put option |
| Pattsituation / Deadlock | deadlock |
| Deadlock-Lösungsmechanismus | deadlock resolution mechanism |
| Russian Roulette | Russian roulette |
| Texas Shoot-Out | Texas shoot-out |
| Mexican Shoot-Out | Mexican shoot-out |
| Good-Leaver-Klausel | good leaver provision |
| Bad-Leaver-Klausel | bad leaver provision |
| Verkehrswert / Marktwert | fair market value |
| Verzinsliches Gesellschafterdarlehen | interest-bearing shareholder loan |
| Unverzinsliches Gesellschafterdarlehen | interest-free shareholder loan |
| Nachrangigkeit / Rangrücktritt | subordination |
| Rückzahlung des Gesellschafterdarlehens | repayment of the shareholder loan |
| Zugelassener Erwerber / Permitted Transferee | permitted transferee |

## Parties and Roles

| German | English |
|---|---|
| Verkäufer / Veräußerer | seller / vendor |
| Käufer / Erwerber | buyer / purchaser |
| Zielgesellschaft / Target | target company |
| Erwerbsgesellschaft | acquiring company |
| Garantiegeber (der Garantien) | warrantor |
| Freistellungspflichtiger | indemnifying party |
| Freistellungsberechtigter | indemnified party |
| Geschäftsführer (GmbH) | managing director |
| Vorstand (AG) | management board / executive board |
| Vorstandsvorsitzender | chairman of the management board / CEO |
| Gesellschafter (GmbH) / Aktionär (AG) | shareholder |
| Mehrheitsgesellschafter | majority shareholder |
| Minderheitsgesellschafter | minority shareholder |
| wirtschaftlich Berechtigter | ultimate beneficial owner (UBO) |

## Transaction Deed Terms

| German | English |
|---|---|
| Abtretungsurkunde | transfer deed / deed of assignment |
| Notarielle Übertragungsurkunde | notarial deed of transfer |
| Gesellschafterliste (GmbH) | shareholders' list |
| Aktienbuch / Aktienregister (AG) | share register |
| Eintragung im Handelsregister | registration at the commercial register |
| Vinkulierungsklausel | consent clause / transfer restriction |

## Core JV Document Terms

| German | English |
|---|---|
| Joint-Venture-Vertrag / Gemeinschaftsunternehmensvertrag | joint venture agreement (JVA) |
| Konsortialvertrag | consortium agreement |
| Co-Investitionsvertrag | co-investment agreement |
| Gemeinschaftsunternehmen / Joint-Venture-Gesellschaft | joint venture company (JVCo) |
| Zweckgesellschaft / Projektgesellschaft | special purpose vehicle (SPV) |
| Partner / Gesellschafter | joint venture partner |
| Bareinlage | cash contribution |
| Sacheinlage | contribution in kind |
| Beteiligung | equity interest / shareholding |
| Beteiligungsquote | percentage interest |
| Governance / Unternehmensführung | governance |
| Lenkungsausschuss / Geschäftsführungsgremium | management committee / steering committee |
| Vetorecht | veto right |
| Zustimmungspflichtige Geschäfte / Zustimmungsvorbehalte | reserved matters |
| Qualifizierte Mehrheit | qualified majority / supermajority |
| Einstimmigkeit | unanimity |
| Ausstiegsklausel / Exit-Klausel | exit clause |
| Gemeinsames Angebot | joint bid |
| Geschäftsplan / Businessplan | business plan |
| Budget / Haushalt | budget |
| Arbeitsprogramm | work program |
| Gewinn- und Verlustverteilung | profit and loss sharing |
| Dividendenausschüttung | dividend distribution |
| Ausschüttungspolitik | distribution policy |
| Kapitalabruf / Nachschuss | capital call / cash call |
| Verwässerung | dilution |
| Gebiet / Territorium | territory |
| Unternehmensgegenstand | corporate purpose / scope of business |
| Exklusivität | exclusivity |
| Laufzeit | term |
| Beendigung / Auflösung | termination / dissolution |
| Liquidation / Abwicklung | winding-up / liquidation |

## Core Corporate Resolution Terms

| German | English |
|---|---|
| Protokoll der Vorstandssitzung (AG) | minutes of the management board meeting |
| Protokoll der Aufsichtsratssitzung (AG) | minutes of the supervisory board meeting |
| Protokoll der Geschäftsführersitzung (GmbH) | minutes of the managing directors' meeting |
| Beschluss des Vorstands | management board resolution |
| Beschluss des Aufsichtsrats | supervisory board resolution |
| Beschluss der Gesellschafterversammlung (GmbH) | shareholders' resolution |
| Beschluss der Hauptversammlung (AG) | shareholders' resolution / general meeting resolution |
| Gesellschafterversammlung (GmbH) | shareholders' meeting |
| Hauptversammlung (AG) | general meeting / annual general meeting (AGM) |
| Ordentliche Hauptversammlung | ordinary general meeting (OGM) |
| Außerordentliche Hauptversammlung | extraordinary general meeting (EGM) |
| Einberufung / Einladung | notice of meeting / convening notice |
| Tagesordnung | agenda |
| Beschlussfähigkeit / Quorum | quorum |
| Einfache Mehrheit | simple majority |
| Qualifizierte Mehrheit (75%) | qualified majority (75%) / supermajority |
| Anwesenheitsliste / Teilnehmerliste | attendance sheet |
| Lagebericht | management report / directors' report |
| Prüfungsbericht / Bestätigungsvermerk | auditor's report |
| Feststellung des Jahresabschlusses | approval of the annual accounts / financial statements |
| Ergebnisverwendung / Gewinnverwendung | allocation of profits / appropriation of earnings |
| Dividendenausschüttung / Gewinnausschüttung | dividend distribution |
| Kapitalerhöhung | capital increase / share capital increase |
| Kapitalherabsetzung | capital reduction |
| Bestellung / Ernennung | appointment |
| Abberufung | removal / dismissal |
| Wiederbestellung | renewal of appointment / re-appointment |
| Entlastung | discharge / ratification (of directors' actions) |
| Erteilung der Prokura | grant of commercial power of attorney (Prokura) |
| Umlaufbeschluss / schriftlicher Beschluss | written resolution / circular resolution |

## Corporate Officers and Bodies

| German | English |
|---|---|
| Vorstandsmitglied | member of the management board / executive director |
| Aufsichtsrat (AG) | supervisory board |
| Aufsichtsratsvorsitzender | chairman of the supervisory board |
| Aufsichtsratsmitglied | member of the supervisory board |
| Alleingeschäftsführer | sole managing director |
| Gesellschafter (GmbH) | shareholder / member |
| Aktionär (AG) | shareholder |
| Prokurist | authorized signatory (holder of Prokura) |
| Handlungsbevollmächtigter | authorized representative |
| Abschlussprüfer / Wirtschaftsprüfer | statutory auditor / external auditor |
| gesetzlicher Vertreter | legal representative / authorized signatory |
| Zeichnungsberechtigung | signatory powers / signing authority |

## Company Types

| German | English |
|---|---|
| Aktiengesellschaft (AG) | stock corporation / public limited company (AG) |
| Gesellschaft mit beschränkter Haftung (GmbH) | limited liability company (GmbH) |
| GmbH & Co. KG | limited partnership with a GmbH as general partner |
| Kommanditgesellschaft (KG) | limited partnership |
| Offene Handelsgesellschaft (OHG) | general partnership |
| Kommanditgesellschaft auf Aktien (KGaA) | partnership limited by shares |
| Eingetragener Verein (e.V.) | registered association |
| Europäische Gesellschaft (SE) | European company (SE — Societas Europaea) |
| Unternehmergesellschaft (haftungsbeschränkt) (UG) | entrepreneurial company (mini-GmbH) |

## Substantive Resolution Content

| German | English |
|---|---|
| Gewinnverwendung | distribution of profits / dividend distribution |
| Verlustabdeckung | coverage of losses |
| Bestellung von Geschäftsführern / Vorstandsmitgliedern | appointment of directors |
| Abberufung von Geschäftsführern / Vorstandsmitgliedern | removal of directors |
| Erteilung von Vollmachten | granting of powers |
| Genehmigung von Geschäften | authorization to carry out transactions |
| Satzungsänderung | amendment of the articles of association |
| Verschmelzung | merger |
| Verschmelzung durch Aufnahme | merger by absorption |
| Verschmelzung durch Neugründung | merger by formation of a new company |
| Spaltung | demerger / spin-off |
| Aufspaltung / Abspaltung | total demerger / partial demerger |
| Formwechsel | conversion (of corporate form) |
| Auflösung und Abwicklung | dissolution and winding-up |
| Genehmigung des Vorstandshandelns | ratification of actions taken |

## Powers of Attorney and Proxies

### Types of Power of Attorney / Vollmacht / Prokura

| German | English |
|---|---|
| Vollmacht | power of attorney (POA) |
| Generalvollmacht | general power of attorney |
| Spezialvollmacht / Einzelvollmacht | special power of attorney |
| Beschränkte Vollmacht | limited power of attorney |
| Notarielle Vollmacht | notarial power of attorney |
| Vollmacht in privatschriftlicher Form | power of attorney by private deed |
| Unwiderrufliche Vollmacht | irrevocable power of attorney |
| Vorsorgevollmacht | durable power of attorney (US) / enduring or lasting power of attorney (UK) (for incapacity) |
| Bankvollmacht | banking power of attorney |
| Prozessvollmacht | power of attorney for legal proceedings |
| Prokura | commercial power of attorney (Prokura, §§ 48-53 HGB) |
| Einzelprokura | sole Prokura |
| Gesamtprokura | joint Prokura |
| Handlungsvollmacht | commercial agency authority (§§ 54 ff. HGB) |
| Untervollmacht / Befugnis zur Untervollmacht | sub-power of attorney / right of substitution |

### Scope, Authentication and Lifecycle

| German | English |
|---|---|
| Vertretungsmacht | powers of representation |
| Einzelzeichnungsberechtigung | sole signing authority (any one signatory may bind) |
| Gesamtzeichnungsberechtigung | joint signing authority (two or more signatories required) |
| Notarielle Beurkundung | notarial recording / notarial deed |
| Notarielle Beglaubigung | notarial certification (of signature) |
| Apostille | apostille (Hague Convention 1961) |
| Konsularische Legalization | consular legalization |
| Beglaubigte Übersetzung | certified translation |
| Widerruf der Vollmacht | revocation of the power of attorney |
| Niederlegung des Mandats | renunciation of the mandate by the agent |
| Erlöschen | lapse / termination |
| nachträgliche Geschäftsunfähigkeit des Vollmachtgebers | subsequent incapacity of the principal |

### Proxy (Meeting) Terms

| German | English |
|---|---|
| Stimmrechtsvollmacht | voting proxy |
| Vollmachtsformular | proxy form |
| Blanko-Vollmacht | blank proxy |
| Weisungsgebundene Vollmacht | directed proxy / instructed proxy |
| Stimmrechtsvollmacht ohne Weisungen | discretionary proxy |
| Aufruf zur Stimmrechtsvertretung | proxy solicitation |
| Briefwahl | postal voting |
| Elektronische Stimmabgabe | electronic voting |
| gespaltene Stimmabgabe | split voting |
| Stimmrechtsvertreter der Gesellschaft | company-appointed proxy / designated representative |

### Verbal Anchors

| German | English |
|---|---|
| erteilt hiermit Spezialvollmacht zugunsten von | hereby grants a special power of attorney to |
| mit weitestgehenden Befugnissen | with the broadest powers |
| mit ausdrücklicher Befugnis zu | with express authority to |
| mit Befugnis zur Untervollmacht | with the right of substitution |
| die vorliegende Vollmacht ist unwiderruflich | this power of attorney is irrevocable |
| die vorliegende Vollmacht gilt bis zum Widerruf | this power of attorney is valid until revoked |
| der Unterzeichnende, in seiner Eigenschaft als gesetzlicher Vertreter der | the undersigned, in his/her capacity as legal representative of |

## Section Headings

| German | English |
|---|---|
| DEFINITIONEN UND AUSLEGUNG | DEFINITIONS AND INTERPRETATION |
| KAUF UND ÜBERTRAGUNG | SALE AND TRANSFER |
| VOLLZUG | COMPLETION |
| GARANTIEN | REPRESENTATIONS AND WARRANTIES |
| FREISTELLUNG | INDEMNIFICATION |
| HAFTUNGSBESCHRÄNKUNGEN | LIMITATIONS ON LIABILITY |
| VERTRAULICHKEIT | CONFIDENTIALITY |
| ALLGEMEINE BESTIMMUNGEN | MISCELLANEOUS |
| GRÜNDUNG DER GEMEINSCHAFTSGESELLSCHAFT | FORMATION OF THE JOINT VENTURE |
| EINLAGEN / BEITRÄGE | CONTRIBUTIONS |
| GOVERNANCE UND GESCHÄFTSFÜHRUNG | GOVERNANCE AND MANAGEMENT |
| ZUSTIMMUNGSVORBEHALTE | RESERVED MATTERS |
| PATTSITUATION | DEADLOCK |
| ANTEILSÜBERTRAGUNG | TRANSFER OF SHARES |
| BEENDIGUNG UND AUSSTIEG | TERMINATION AND EXIT |
| ERGEBNISVERTEILUNG | PROFIT AND LOSS SHARING |
| ERÖFFNUNG DER SITZUNG | OPENING OF THE MEETING |
| FESTSTELLUNG DER BESCHLUSSFÄHIGKEIT | QUORUM VERIFICATION |
| ERSTER BESCHLUSS | FIRST RESOLUTION |
| VOLLMACHTEN / BEVOLLMÄCHTIGUNGEN | POWERS |
| SCHLUSS DER SITZUNG | CLOSING OF THE MEETING |
| SPEZIALVOLLMACHT | SPECIAL POWER OF ATTORNEY |

## Notes

- **"Completion" vs "Closing"**: UK practice uses "completion"; US practice uses "closing".
  Default to US English. Only switch to UK on an explicit user instruction in the original prompt (e.g. 'use UK English'); do NOT infer from governing law, audience, or jurisdiction.

- **"Gesellschafterdarlehen"**: Under German insolvency law (§ 39 InsO), shareholder loans
  are automatically subordinated in insolvency. This is different from contractual
  subordination. Flag in translation if relevant.

- **"Geschäftsanteile" (GmbH) vs "Aktien" (AG)**: "Geschäftsanteile" are quotas/interests
  in a GmbH; "Aktien" are shares in an AG. Both translate as "shares" in English but the
  distinction may be legally relevant.

- **"Vinkulierung"**: A transfer restriction requiring the company's consent before shares
  can be transferred. Translate as "consent clause" or "transfer restriction".

- **Notarial requirement**: Under German law, the transfer of GmbH shares requires
  notarial form (§ 15 GmbHG). Flag this requirement in translation if relevant.

- **"Gemeinschaftsunternehmen"**: The standard German term for joint venture. Also
  commonly referred to as "Joint Venture" (borrowed English).

- **"Zustimmungsvorbehalte"**: Decisions requiring the consent of all or specific
  shareholders. Translate as "reserved matters" (UK standard).

- **"Nachschusspflicht"**: An obligation to make additional contributions to the company
  if called upon (§ 26 ff. GmbHG). Translate as "obligation to make additional
  contributions" or "capital call obligation".

- **Dual board structure (AG)**: German AGs have a two-tier board: the Vorstand
  (management board — runs the company) and the Aufsichtsrat (supervisory board —
  oversees the Vorstand). NEVER confuse the two. The Vorstand is NOT the "board of
  directors" — that term combines both functions.

- **"Entlastung"**: A specifically German concept where the shareholders formally approve
  (discharge) the management's conduct for a past fiscal year. This does not exist in
  common law. Translate as "discharge" or "ratification of directors' actions" with note.

- **"Gesellschafterversammlung" vs "Hauptversammlung"**: The former is the meeting of
  GmbH shareholders; the latter is the meeting of AG shareholders. Both translate as
  "shareholders' meeting" but the governance rules differ significantly.

- **GmbH & Co. KG**: A very common German structure — a limited partnership where the
  general partner is a GmbH (limiting the general partner's liability). Preserve the
  structure designation.

- **"Vollmacht" vs "Prokura" vs "Handlungsvollmacht"**: German distinguishes general
  representation authority (Vollmacht) from statutory commercial powers. **Prokura**
  (§§ 48-53 HGB) is registered in the commercial register and gives the holder very
  broad authority for all commercial transactions of any business; do not translate as
  "power of attorney" alone — use "commercial power of attorney (Prokura)".
  **Handlungsvollmacht** (§§ 54 ff. HGB) is narrower — limited to acts customary in the
  particular business — translate as "commercial agency authority". Plain **Vollmacht**
  is the civil-law power of attorney — translate as "power of attorney".

- **"Einzelprokura" vs "Gesamtprokura"**: Sole vs joint Prokura. Translate as "sole
  Prokura" / "joint Prokura" and add an explanatory note where needed.

- **"Vorsorgevollmacht"**: A health-care/incapacity-planning POA. Translate as
  "durable power of attorney" (US default) or "enduring power of attorney" (UK) /
  "lasting power of attorney" (England/Wales after 2007). Do not translate as "advance
  directive" — that is a different instrument.

- **"Stimmrechtsvollmacht"**: Translate as "voting proxy" (NOT "voting power of
  attorney"). The function — attendance and voting at a meeting — dictates the English
  term.

- **"Notarielle Beurkundung" vs "Notarielle Beglaubigung"**: The former is full notarial
  recording of the transaction; the latter is mere certification that a signature is
  genuine. Distinguish these — they have different legal effects.

- **Apostille vs legalization**: Use "apostille" only for Hague Convention countries;
  use "consular legalization" for non-Hague countries.
