als Fremdkapital befriedigen

14:00 Jun 1, 2007 

yes but fremdkapital basically means money belonging to other people. so theoretically these loans are under the section "fremdkapital". in the case of bankruptcy the loans are referred to as "eigenkapitalersetzend".

14:00 Jun 1, 2007 

Yes, equity will be dissolved to pay financial obligations, but in this case the statement is that Kapitalkonto II is not to be considered an obligation to be repaid to the owners - it's an investment at 100% risk.

13:39 Jun 1, 2007 

"Die auf dem Kapitalkonto II eingezahlten Beträge sind im Insolvenzfall nicht als Fremdkapital zu befriedigen; sie zählen zum Eigenkapital der Gesellschaft." I always thought "Eigenkapital" will be used to service financial demands in case of an insolvency....?

13:33 Jun 1, 2007 

@ James: yes, as far as I understand, this account is for shares in profits, but the partners or shareholders are free to pay in money themselves, if they wish. The sentence preceeding the one of my question is: "In addition to Capital Account I for the General Partner, a Capital Account II is kept for each Limited Partner, which shall be used for accounting transactions between the company and its partners as well as for crediting share of profit and debiting share of loss."

13:13 Jun 1, 2007 

both times propose - my laptop doesn't like me today...

13:12 Jun 1, 2007 

James, if you would post a propsed answer, I could agree...I'd hate to propse an answer using your ideas for points....

12:46 Jun 1, 2007 

These means that, if there is some money leftover to distribute to the creditors, the loans from the shareholders will not be "befriedigt". Hope this helps

12:45 Jun 1, 2007 

Are these loans paid to the company by the shareholders themselves? If so then in the case of an insolvency the loans from the shareholders cannot be claimed against the insolvency assets under German Law.