Cash pooling is a prevailing tool for managing liquidity in the context of group financing, at both the national and international level.

The Austrian Supreme Court recently ruled on the issue of capital maintenance in connection with intra-group cash pooling for the first time. Together with Business Circle, Eisenberger & Herzog presented on this topic at weXelarate on February 20, 2020.

In addition to summarizing the highlights of the recent decision, corporate/M&A expert Marco Steiner discussed differing opinions on the extent to which intra-group cash pooling is allowed. He noted that the German Equity Replacement Act (EKEG) and the Austrian Banking Act (BWG) may present additional issues.

Mr. Steiner’s delivery was enhanced by several illustrative and practical example scenarios. With an adept grasp on this complex subject, he fielded several questions from the engaged audience members during the breakfast which followed.