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Convertible Bonds and Option Bonds: A Comparative Study

Published online by Cambridge University Press:  17 February 2009

Heribert Hirte
Heribert Hirte
Affiliation:
Dr. iur., LL.M. (Berkeley), Professor of law and Managing Director of the Institute of Commercial Law, Shipping Law and Economic Law at the University of Hamburg; Lecturer at the Centre Universitaire de Luxembourg.
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Extract

There are numerous differences in the legal forms of convertible bonds and option bonds in Europe, both between countries and between the time sequences. These differences are a result of the different tax laws and of differing conditions in the markets for equity and outside capital. At this point, an overview is to be given, going back to the analysis of the most important European systems in the special Zeitschrift für Unternehmens- und Gesellschaftsrecht [hereinafter: ZGR] issue Convertible and Option Bonds in Germany and Europe, published jointly by Marcus Lutter and the present author. It will concentrate on the legal issues regarding convertible and option bonds as an instrument of corporate financing. Therefore, a question to be disregarded, for example, is to what extent convertible or option bonds can be used as an instrument to motivate executives and employees, in particular where the issue of naked warrants is regarded as inadmissible. The overview will be limited essentially to an analysis of the contributions in the abovementioned special ZGR issue. For this reason, with only a few exceptions, only the legal systems in Germany, Austria and Switzerland, France, Belgium and the Netherlands, Italy, Spain and Portugal as well as English and Swedish law are included in the study, and only the legal issues discussed in these contributions are taken into account. Thus, if a solution is discussed or emphasised here only for one country, this does not mean that it exists only in that country. Moreover, similarities as well as differences are not mentioned if they appear to be a matter of course; the point instead is to achieve “problem awareness”.

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Articles
Information
European Business Organization Law Review (EBOR) , Volume 1 , Issue 3 , September 2000 , pp. 507 - 537
Copyright
Copyright © T.M.C. Asser Press and the Authors 2000

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References

1 For the influence of the interest level see Schäfer, , “Wandel- und Optionsanleihen in Deutschland. Praxisprobleme von Equity-linked Emissionen”, in Lutter, and Hirte, (eds.), 62 at p. 63.Google Scholar

2 Most recent amendments of the law, which became necessary primarily due to the conversion to the Euro, have been taken into account only exceptionally; e.g., for Austria, in this respect see Nowotny, , “Wandel- und Optionsanleihen in Österreich”, in Lutter, and Hirte, (eds.), 176 at p. 210.Google Scholar

3 For stock options, see the information on Germany in Hirte, , Kapitalgesellschaftsrecht, 2nd ed. (1999) pp. 268 et seq., nn. 837 et seq.Google Scholar; Hirte, “Ausgewählte Fragen zu Stock-option-Plänen und zum Erwerb eigener Aktien”, in: Schmidt, and Riegger, , Gesellschaftsrecht 1999 (RWS Verlag Kommunikationsforum, 2000) p. 211Google Scholar; Benner-Heinacher, “Stock-option-Pläne und Erwerb eigener Aktien”, in: ibid., p. 251; Schäfer, supra n. 1,62 at p. 78; for the Netherlands see Perrick, , “Wandelschuldverschreibungen in den Niederlanden”, in: Lutter, and Hirte, (eds.), 155 at pp. 157 et seq.Google Scholar; for Sweden, Skog, “Convertible Bonds and Subscription Warrants in Sweden”, in: Lutter, and Hirte, (eds.), 242 at p. 243Google Scholar; for Switzerland Kondgen and Daeniker, “Wandel- und Optionsanleihen in der Schweiz”, in: Lutter, and Hirte, (eds.), 265 at p. 278Google Scholar, and for the United Kingdom, Kasolowsky, , “Securities Regulation of Convertible Securities in the United Kingdom”, in: Lutter, and Hirte, (eds.), 99 at p. 107Google Scholar. In Portugal they have so far been practically unknown, cf., Antunes, , “Wandel- und Optionsanleihen in Portugal”, in: Lutter, and Hirte, (eds.) 212 at p. 213 n. 2Google Scholar, whereas the same detour via convertible bonds is chosen in Austria as German law had chosen before the entry into force of the Gesetz zur Kontrolle und Transparenz im Unternehmensbereich [Act for the Control and Transparency in the Corporate Area, hereinafter: KonTraG] of 27 April 1998, Bundesgesetzblatt [hereinafter: BGB1.] 1786. For this, see Nowotny, supra n. 2, pp. 206 et seq. Concerning current issues relating to some further hybrid forms of corporate financing from the German point of view see Schäfer, supra n. 1; for Going Private Bonds from the Austrian point of view see also Nowotny, supra n. 2, pp. 203 et seq.

4 This includes some additional remarks on French and Swiss law as well as references to Danish, Greek and US law. Attention should also be drawn to the references to Danish, Norwegian and Finnish law made by Skog, supra n. 3, pp. 263 et seq.

5 Concerning bonds with an option right relating to the shares of other companies, see Nowotny, supra n. 2, pp. 188 et seq. and pp. 196 et seq.; Köndgen and Daeniker, supra n.3, pp. 276 et seq.

6 Campobasso, , “Wandelanleihen, Optionsanleihen und Anleihen mit Optionsrechten in Italien”, in: Lutter, and Hirte, (eds.), 127 at pp. 148 et seq. and p. 151Google Scholar; Alonso, Espinosa, “Wandel-und Optionsanleihen in Spanien”, in: Lutter, and Hirte, (eds.), 300 at p. 325.Google Scholar

7 Campobasso, supra n. 6, pp. 152 et seq.; Alonso Espinosa, supra n.6, p. 324.

8 Goulding, , “Convertible Securities in England and Wales”, in: Lutter, and Hirte, (eds.), 86 at pp. 88 et seq.Google Scholar, Skog, supra n. 3, pp. 244 et seq.

9 For this, see Van, Ommeslaghe and Van, Ryn, “Capital and Securities of Marketable Share Companies”, International Encyclopedia of Comparative Law, vol. 13 – Business and Private Organizations, ch. 5 (Tübingen, 1990), p. 118.Google Scholar

10 Alonso Espinosa, supra n. 6, p. 313.

11 Goulding, supra n. 8, p. 89 n. 16.

12 Antunes, supra n. 3, pp 215 et seq.

13 Benoît-Moury, and Croes, , “Wandel- und Optionsanleihen in Belgien”, in: Lutter, and Hirte, (eds.), 27 at p. 59.Google Scholar

14 For this, see Hirte, , “§ 207 AktG [Gesetz über Aktiengesellschaften und Kommanditgesellschaften auf Aktien] note 68” (concerning England) in Groβkommentar zum Aktiengesetz, 4th ed. (1999)Google Scholar; in general also note 74; Hirte, and Butters, , “Die Kapitalerhöhung aus Gesellschaftsmitteln. Anregungen für Auslegung und Reform des deutschen Rechts”, Zeitschrift für Bankrecht und Bankwirtschaft [hereinafter: ZBB] (1998), 287 at p. 297.Google Scholar

15 Goulding, supra n. 8, p. 87.

16 Ibid., p. 88, see also p. 92 and p. 95.

17 Benoît-Moury and Croes, supra n. 13, p. 32.

18 Guyon, , “Wandel- und Optionsanleihen in Frankreich”, in: Lutter, and Hirte, (eds.), p. 113.Google Scholar

19 Hirte, , in: Wertpapiermitteilungen [hereinaftenWM] (1993) 2067 at p. 2068Google Scholar (review of Schumann, , Optionsanleihen (1990)Google Scholar); also Lutter, in: Kölner Kommentar zum Aktiengesetz, 2nd ed. (1995) § 192 AktG note 9 and § 221 AktG note 195Google Scholar; Lutter, , “Aktienoptionen für Führungskräfte – de lege lata und de lege ferenda”, Zeitschrift für Wirtschaftsrecht [hereinafter: ZIP] (1997), 1 at p. 7Google Scholar; Martens, , “Die mit Optionsrechten gekoppelte Aktienemission”, Die Aktiengesellschaft [hereinafter: AG] (1989) 69Google Scholar; Martens, , “Die bilanzrechtliche Behandlung internationaler Optionsanleihen nach § 150 Abs. 2 AktG”, in: Festschrift für Stimpel (1985) 621 at pp. 629 et seq.Google Scholar, Schumann, , Optionsanleihen (1990) 42Google Scholar; undecided Hüffer, in: Aktiengesetz, 4th ed. (1999) § 221Google Scholar AktG note 75 (with further references to opposing opinions); for German law in other respects see Schäfer, supra n. 1, pp. 66 et seq. and pp. 78 et seq.

20 Guyon, supra n. 18, p. 110 and p. 112.

21 Benoît-Moury and Croes, supra n. 13, pp. 57 et seq.

22 Alonso Espinosa, supra n. 7, pp. 309 et seq.

23 Ibid., p. 324 n. 27.

24 Skog, supra n. 1, p. 263.

25 Ibid., p. 262.

26 Nowotny, supra n.2, pp. 204 et seq.

27 Köndgen and Daeniker, supra n. 3, pp.289 et seq.; see also p. 268 n. 9.

28 Kasolowsky, supra n. 3, pp. 99 et seq.; see also Goulding, supra n. 8, pp. 88 et seq.

29 Benoît-Moury and Croes, supra n. 13, p. 27.

30 Ibid., pp. 42 et seq.

31 Guyon, supra n. 18, pp. 118 et seq.

32 Campobasso, supra n. 6, pp. 136 et seq.; for Portugal, see Antunes, supra n. 3, pp. 220 et seq.

33 For Germany, see Kümpel, in: Bank- und Kapitalmarktrecht (1995) note 11.87Google Scholar; for Austria see Nowotny, supra n. 2, pp. 196 et seq.; for Switzerland see Köndgen and Daeniker, supra n. 3, pp. 281 et seq.; for the Netherlands see Perrick, supra n. 3, pp. 302 et seq.

34 Act to Simplify the Issue of Bonds of 17 December 1990, BGBl. I 2839.

35 For this, see the official reasons for the government bill, published in ZIP (1989) 405; regarding the stringency of the former obligation to obtain a permit in a legal comparison see Van Ommeslaghe and Van Ryn, supra n. 9, p. 114.

36 S. 174 (2) dAktG 1937 went even further, requiring a government permit for all convertible and option bonds, even if no certain amount of money was promised.

37 For the purpose of the former rules see Schlede, and Kley, , “Praxis der Finanzierung deutscher Unternehmen durch Optionsanleihen”, in: von Colbe, Busse et al. (eds.), Bilanzierung von Optionsanleihen im Handelsrecht (1987) 1 at pp. 12 et seq.Google Scholar

38 Benoît-Moury and Croes, supra n. 13, p. 34.

39 For this, and agreeing, see Köndgen and Daeniker, supra n. 3, p. 270.

40 Alonso Espinosa, supra n. 6, pp. 301 et seq. (with differentiating criticism of this prohibition); Antunes, supra n. 3, p. 217; Campobasso, supra n. 6, p. 133; dissenting with regard to England, Goulding, supra n. 8, p. 87; see also Van Ommeslaghe and Van Ryn, supra n. 9, p. 113, pointing out that accounting requirements or a minimum time since the foundation of the undertaking are established by law in some countries for all issues of bonds.

41 See Schäfer, supra n. 1, pp. 73 et seq.

42 Campobasso, supra n. 6, p. 133.

43 Alonso Espinosa, supra n. 6, pp. 305 et seq., Antunes, supra n. 3, p. 219.

44 This is still required by Italian and Portuguese law; see Campobasso supra n. 6, p. 134 (with criticism); Antunes, supra n. 6, pp. 218 et seq.

45 Benoît-Moury and Croes, supra n. 13, p. 45; in this respect also Portuguese law, see Antunes, supra n. 3, p. 219.

46 Kasolowsky, supra n. 3, pp. 102-103.

47 For this, see Campobasso, supra n. 6, pp. 134 et seq. (with criticism); Skog, supra n.3, p. 252.

48 Alonso Espinosa, supra n. 6, p. 90; Perrick, supra n.3, pp. 163 et seq.; for the issue rate of new issue shares see Bagel, , Der Ausschluβ des Bezugsrechts in Europa (1999), p. 147Google Scholar (England), p. 191 (Netherlands), pp. 192 et seq. (France).

49 Alonso Espinosa, supra n. 6, p. 310; concerning the issue rate of new issue shares in Spain, see Bagel, supra n. 48, pp. 77 et seq.

50 Campobasso, supra n. 6, p. 147.

51 For this, see Hüffer in: Aktiengesetz, supra n. 19, § 71 AktG note 5 and § 221 AktG note 49, 54; Krieger, in: Münchener Handbuch des Gesellschaftsrechts, vol. 4 (Aktiengesellschaft), 2nd ed. (1999) § 63 notes 16-17Google Scholar; Lutter in: Kölner Kommentar, supra n. 19, § 221 AktG note 119.

52 Perrick, supra n. 3, pp. 162 et seq.; likewise for Portugal Antunes, supra n. 3, p. 232.

53 Perrick, supra n. 3, pp. 162 et seq.; for bonds with an obligation to convert under German law, see Schäfer, supra n. 1, p. 65.

54 Kasolowsky, supra n. 3, p. 106.

55 For German law see Schäfer, supra n. 1, p. 67.

56 Proposal for a Fifth Directive to co-ordinate the protective provisions concerning the structure of the stock corporation as well as the powers and obligations of its organs of 9 October 1972, OJ [1972] C 131/49 of 13 December 1972; amended proposal for a Fifth Directive of the Council concerning the structure of the stock corporation as well as the powers and obligations of its organs of 19 August 1983, OJ [1983] C 240/2 of 9 September 1983; second amended proposal for a Fifth Directive of the council concerning the structure of the stock corporation as well as the powers and obligations of its organs of 13 December 1990, OJ [ 1991 ] C 7/4 of 11 January 1991; third amended proposal for a Fifth Directive of the Council concerning the structure of the stock corporation as well as the powers and obligations of its organs of 20 November 1991, OJ [1991] C 321/9 of 12 December 1991; a summary of the current discussion in Hopt, , “Europäisches Gesellschaftsrecht – Krise und neue Anläufe”, ZIP (1998) 96 at pp. 97 et seq.Google Scholar

57 See Guyon, supra n. 18, p. 115; Campobasso, supra n. 6, p. 130; Alonso Espinosa, supra n. 6, pp. 301 et seq. and pp. 306 et seq.; Antunes, supra n. 6, pp. 219 et seq. and p. 240; Van Ommeslaghe and Van Ryn, supra n. 9, p. 113.

58 See Guyon supra n. 18, p. 115; Antunes, supra n. 6, p. 240.

59 Alonso Espinosa, supra n. 6, pp. 301 et seq.; Van Ommeslaghe and Van Ryn, supra n. 9, p. 113.

60 Alonso Espinosa, supra n. 6, pp. 306 et seq.

61 For the limits following from the authorisation as to the details of the issue conditions under German law, see Schäfer, supra n. 1, pp. 68 et seq.

62 Alonso Espinosa, supra n. 6, p. 307; Van Ommeslaghe and Van Ryn, supra n. 9, p. 113.

63 Antunes, supra n. 3, p. 229 (Portuguese law); Bagel, supra n. 48, pp. 94 et seq. (Italy), pp. 98 et seq. (Spain) and pp. 100 et seq. (Portugal). See also the provision in Art. 180 (3) 3 of the French company law; for this see Bagel, supra n. 48, pp. 216 et seq.

64 Benoît-Moury and Croes, supra n. 13, p. 36; Bagel, supra n. 48, pp. 223 et seq.

65 Benoît-Moury and Croes, supra n. 13, p. 39; Bagel, supra n. 48, pp. 241 et seq.

66 Goulding, supra n. 8, p. 98.

67 See Hirte, , Bezugsrechtsausschluβ und Konzernbildung (1986) pp. 101 et seq.Google Scholar

68 See also Bagel, supra n. 48, p. 115.

69 No. 77/91/EEC of 13 December 1976, OJ [1977] L 26/1 of 31 January 1977; also in Lutter, , Europäisches Unternehmensrecht, 4th ed. (1996) pp. 114 et seq.Google Scholar

70 Goulding, supra n. 8, pp. 91 et seq.; Bagel, supra n. 48, p. 153.

71 Goulding, supra n. 8, pp. 93 et seq.

72 Concerning the earlier dispute about this issue in Spain, see Alonso Espinosa, supra n.6, p. 319.

73 Which is referred to in Switzerland as “advance subscription right” for the purpose of distinction from “genuine” subscription rights; see Köndgen and Daeniker, supra n. 3, p. 290.

74 Ibid., n. 70.

75 It was confirmed in Wall v. Utah Cooper Co., 70 N.J.Eq. 17, 62 A. 533 (1905); see Van Ommeslaghe and Van Ryn, supra n. 9, p. 118.

76 Benoît-Moury and Croes, supra n. 13, p. 36; Bagel, supra n. 48, p. 190.

77 Köndgen and Daeniker, supra n. 3, p. 293; Bagel, supra n. 48, pp. 254 et seq.

78 Entscheidungen des Schweizerischen Bundesgerichts [hereinafter: BGE] 121 III 219 et seq.; Köndgen and Daeniker, supra n. 3, pp. 291 et seq.; Bagel, supra n. 48, pp. 275 et seq.; Zobl, , “Besprechung des Urteils des Schweizerischen Bundesgerichts vom 25. April 1995 i.S. Schweiz. Bankgesellschaft gegen BK Vision AG, BGE 121 III 219 et seq. betr. genehmigtes und bedingtes Kapital”, Schweizerische Zeitschrift für Wirtschaftsrecht/Revue suisse de droitdes affaires [hereinafter: SZW/RSDA] (1996) pp. 139 et seq.Google Scholar

79 Köndgen and Daeniker, supra n. 3, pp. 291 et seq. and p. 293, with criticism of the reasons given for an exclusion of the subscription right by reference to an intended placement abroad.

80 See Entscheidungen des Bundesgerichtshofes in Zivilsachen [hereinafter: BGHZ] 83, 319 at pp. 320 et seq.; also in ZIP (1982) 689 and Neue Juristische Wochenschrift [hereinafter: NJW] (1982) 2444Google Scholar for the Holzmann Case.

81 BGHZ 136, 133; also in NJW (1997) 2815; ZIP (1997) 1499; Entscheidungen zum Wirtschafstrecht [hereinafter: EWiR] § 203 AktG 1/97, 1913 (annotated by Hirte); Juristen-Zeitung [hereinafter: JZ] (1998) 47Google Scholar (annotated by Lutter); Deutsches Steuerrecht [hereinafter: DStR] (1997) 1460Google Scholar (annotated by Goette); Nachschlagewerk des Bundesgerichtshofs [hereinafter: LM] H. 1/1998, § 186 AktG 1965 no. 9 (annotated by Schwark) for the Siemens/Nold Case. See also Kindler, , “Bezugsrechtsausschluß und unternehmerisches Ermessen nach deutschem und europäischem Recht”, ZGR (1998) 35Google Scholar, following ECJ decision C-42/95, [1996] ECR I-6017; also in NJW (1991) 721; Europäische Zeitschrift für Wirtschaftsrecht [hereinafter: EuZW] (1997) 52Google Scholar; ZIP (1996) 2015; DStR (1997) 37 (annotated by Schüppen). See also Drinkuth, , “Die Vereinbarkeit der deutschen Rechtsprechung zum Bezugsrecht und Bezugsrechtsausschluß bei Kapitalerhohungen von Aktiengesellschaften mit der Zweiten Richtlinie im Europäischen Gemeinschaftsrecht, zugleich eine Besprechung von EuGH Rs. C-42/95 [Nold/Siemens]”, Internationales Steuerrecht [hereinafter: IStR] (1997) 312Google Scholar; final motions of Attorney General Tesauro, ZIP (1996) 1825; the decision goes back to the BGH decision to submit the matter to the ECJ, in NJW (1995) 2656; also in ZIP (1995) 372 with further references by Lutter, , ZIP (1995) 648Google Scholar; EuZW (1995) 351; Der Betrieb [hereinafter: DB] (1995) 465Google Scholar; EWiR Art. 29 RL 77/91/EWG 1/95, 360 (annotated by Hirte); the doubts which caused the BGH to submit the matter to the ECJ go back primarily to Kindler, , “Die sachliche Rechtfertigung des aktienrechtlichen Bezugsrechtsausschlusses im Lichte der Zweiten Gesellschaftsrechtlichen Richtlinie der Europäischen Gemeinschaft”, Zeitschrift für das gesamte Handelsrecht und Wirtschaftsrecht [hereinafter: ZHR] (1994) 339 at pp. 361 et seq.Google Scholar; dissenting Hirte, , “Vereinbarkeit der Inhaltskontrolle des Bezugsrechtsausschlusses bei Sacheinlagen mit europäischem Recht?”, DB (1995) 1113 at p. 1114Google Scholar; overall summary by Hirte, , “Die Entwicklung des Unternehmens- und Gesellschaftsrechts in Deutschland. 1. Teil: Allgemeines Unternehmens- und Aktienrecht”, NJW (1998) 2943 at p. 2947Google Scholar; Bagel, supra n. 48, pp. 27 et seq. and pp. 336 et seq.

82 See BGHZ 71, 40; also in NJW (1978) 1316 for the Kali und Salz Case; already previously (but not as far-reaching) BGHZ 21, 354 for the Minimax I Case; BGHZ 33,175 for the Minimax II Case; for an overall extensive description see Hirte, supra n. 67, pp. 58 et seq.; Hirte, , Kapitalgesellschaftsrecht, 2nd ed. (1999), pp. 261Google Scholar et seq. nn. 817 et seq.

83 For the status of the current discussion (with a general tendency denying this), see Schäfer, supra n. 1, pp. 70 et seq.

84 For this, see Hirte, , Kapitalgesellschaftsrecht, 2nd ed. (1999) pp. 264 et seq., nn. 828 et seq.Google Scholar

85 Nowotny, supra n. 2, p. 195.

86 Alonso Espinosa, supra n. 6, p. 320; Antunes, supra n. 3, p. 230; Bagel, supra n. 48, pp. 70 et seq. (Spain) and pp. 74 et seq. (Portugal).

87 Skog, supra n. 3, p. 251.

88 Köndgen and Daeniker, supra n. 3, pp. 291 et seq.; differentiating with respect to the cost risk Bagel, supra n. 48, pp. 270 et seq.

89 Guyon, supra n. 18, pp. 116 et seq.; Bagel, supra n. 48, pp. 207 et seq. (as to Belgium pp. 209 et seq.); for similar ideas in Germany see Frey, and Hirte, , “Das Vorab-Bezugsrecht auf Aktien und Optionsanleihen”, ZIP (1991) 697 at pp. 702 et seq.Google Scholar; Wiedemann, in: Groβkommentar zum Aktiengesetz, 4th ed. (1995) § 186 AktG note 42.Google Scholar

90 Benoît-Moury and Croes, supra n. 13, p. 36; regarding this requirement, see also Hirte, , “Bezugsrechtsfragen bei Optionsanleihen”, WM (1997) 321 at p. 324 n. 37Google Scholar; Hirte, , “Anmerkungen und Anregungen zur geplanten gesetzlichen Neuregelung des Bezugsrechts”, ZIP (1994) 356 at p. 359Google Scholar; Hirte, , “Geldausgleich statt Inhaltskontrolle”, WM (1997) 1001 at p. 1004Google Scholar; see also Bagel, supra n. 48, pp. 201 et seq.; Ekkenga, , “Kapitalmarktrechtliche Aspekte des Bezugsrechts und Bezugsrechtsausschlusses”, AG (1994) 59 at pp. 60 et seq.Google Scholar; see Seibert, , Köster, and Keim, , Die kleine AG. Gesellschaftsrechtliche, umwandlungsrechtliche und steuerrechtliche Aspekte, 3rd ed. (Cologne, 1996) pp. 117 et seq.Google Scholar

91 Benoît-Moury and Croes, supra n. 13. p. 38.

92 Ibid.

93 For an extensive discussion of the substantive judicial review of resolutions in England, see Bagel, supra n. 48, pp. 119 et seq.

94 Goulding, supra n. 8, pp. 91 et seq.

95 Ibid., p. 96; Bagel, supra n. 48, pp. 152 et seq.

96 Goulding, supra n. 8, p. 95.

97 Kasolowsky, supra n. 3, p. 104 with references to arguments challenging this differentiation. For the English capital market law see also the overview by Bagel, supra n. 48, p. 157.

98 Kasolowsky, supra n. 3, pp. 104 et seq.; Bagel, supra n. 48, pp. 139 et seq.

99 See BGHZ 83, 122 at pp. 142 et seq.; also in ZIP (1982) 568; NJW (1982) 1703 for the Holzmüller Case; see also Hirte, supra n. 67, pp. 184 et seq.

100 Kasolowsky, supra n. 3, p. 106.

101 Guyon, supra n. 18, p. 115; Benoît-Moury and Croes, supra n. 13, pp. 34 et seq.; see also Van Ommeslaghe and Van Ryn, supra n. 9, p. 118.

102 Alonso Espinosa, supra n. 6, p. 348, for the applicability to the issue of option rights, which is unclear, see p. 29; Antunes, supra n. 3, pp. 221 et seq.

103 See already Hirte in: Groβkommentar zum Aktiengesetz, supra n. 14, § 207 AktG note 75; Hirte and Butters, supra n. 14, p. 289 (France) and pp. 300 et seq. (Switzerland); Wiedemann, supra n. 89, § 182 AktG notes 17, 22, 28; Bagel, supra n. 48, pp. 83 et seq. (Spain, Portugal, Italy) and pp. 197 et seq. (France, Belgium).

104 For this, see Hirte, , Kapitalschutz (Gläubiger- und Eignerschutz) im europäischen Recht, in: Grundmann, Systembildung und Systemlücken in Kerngebieten der europäischen Harmonisierung, Ringvorlesung des wirtschaftsrechtlichen Studienganges der Martin-Luther-Universität Halle-Wittenberg 1998/1999 (2000) 211 at pp. 223 et seq.Google Scholar; Bagel, supra n. 48, pp. 202 et seq.

105 Benolt-Moury and Croes, supra n. 13, pp. 34 et seq.

106 Ibid., p. 35.

107 Alonso Espinosa, supra n. 6, p. 318.

108 Goulding, supra n. 8, p. 96; Bagel, supra n. 48, pp. 147 et seq.

109 Köndgen and Daeniker, supra n. 3, p. 294; Bagel, supra n. 48, pp. 277 et seq.

110 See therefor Bagel, supra n. 48, pp. 268 et seq.

111 See, however, the rules in France in Art. 155(2) of the decree on commercial companies of 1967 (see Bagel, supra n. 48, pp. 219 et seq.) and the requirements as to the annual financial statements in Belgium in Art. 77 (4) LCS (see Bagel, supra n. 48, p. 225).

112 In favour of this Hirte, supra n. 67, pp. 120 et seq.; Hüfferin: Aktiengesetz, supra n. 19, § 203 AktG notes 36 et seq.; Lutter in: Kölner Kommentar, supra n. 19, § 203 AktG notes 30 et seq.; dissenting Krieger in: Münchener Handbuch, supra n. 34, § 58 note 44.

113 Guyon, supra n. 18, p. 117; Benoît-Moury and Croes, supra n. 13, p. 42; Antunes, supra n. 3, pp. 238 et seq.

114 Antunes, supra n. 3, pp. et seq.; for the law in France see Hirte, , “Gesellschafts- und kapitalmarktrechtliche Fragen der Finanzierung im multinationalen Konzern und bei grenzüberschreitender Finanzierung”, in: Lutter, , Scheffler, and Schneider, (eds.), Handbuch der Konzernfinanzierung (1998) 1108 at pp. 1122 et seq.Google Scholar

115 See Hirte, supra n. 114, pp. 1122 et seq. with further references; Karollus in: Geßler, , Hefermehl, , Eckardt, and Kropff, (eds.), Aktiengesetz. Kommentar (1973ff) § 221 AktG notes 33 and 40; see also Hüffer in: Aktiengesetz, supra n. 19, § 221 AktG note 71; and for Switzerland Köndgen and Daeniker, supra n. 3, pp. 276 et seq.Google Scholar

116 For this see Schäfer, supra n. 1, p. 64.

117 For the admissibility of such proceedings under German law (in particular in connection with the subscription right) see Hirte, supra n. 114, pp. 1119 et seq.; Hirte, supra n. 67, pp. 60 et seq.; Hüffer in: Aktiengesetz, supra n. 19, § 221 AktG notes 70 et seq.; Karollus in: Geßler, et al., supra n. 115, § 221 AktG note 39 a.E.; Lutter, , “Optionsanleihen ausländischer Tochter-gesellschaften”, in: Wirtschaftspraxis und Rechtswissenschaft. Festschrift für Kastner (Wien 1972) 245 at p. 261Google Scholar; Schumann, supra n. 19, pp. 193 et seq.; Schäfer, supra n. 1, p. 69; Martens, “Die bilanzrechtliche Behandlung internationaler Optionsanleihen”, in: Busse von Colbeet al. (eds.), supra n. 37, 151 at pp. 158 et seq.; for the receding significance of this type of bond see Schäfer, supra n. 1, p. 64.

118 Campobasso, supra n. 6, pp. 122 et seq., pp. 148 et seq. and p. 150.

119 Perrick, supra n. 3, p. 158 and p. 166; Köndgen and Daeniker, supra n.3, p. 271, p. 276, see also p. 273 (for the delivery obligation) and pp. 297 et seq. (for the tax law background); Nowotny, supra n. 2, pp. 190 et seq.

120 Benoît-Moury and Croes, supra n. 13, p. 41.

121 For this see Nowotny, supra n. 2, p. 185.

122 For this see Köndgen and Daeniker, supra n. 3, p. 272.

123 Ibid., p. 289.

124 Ibid., p. 294.

125 For France see Guyon, supra n. 18,p. Ill and p. 115; for Italy see Campobasso, supra n. 6. pp. 131 et seq., see also p. 146; for Spain see Alonso Espinosa, supra n. 6, pp. 313 et seq.

126 Guyon, supra n. 18, pp. 122 et seq.

127 Campobasso, supra n. 6, pp. 131 et seq., see also p. 129; Alonso Espinosa, supra n. 6, pp. 318 et seq., the applicability of these rules to (isolated) option rights being, however, unclear; for this see p. 327.

128 Skog, supra 3, p. 244.

129 Goulding, supra n. 8, p. 91.

130 Antunes, supra n. 3, p. 221.

131 Ibid., p. 223.

132 For the distinction see Nowotny, supra n. 2, pp. 183 et seq.; Benoît-Moury and Croes, supra n. 13, p. 31.

133 Nowotny, supra n. 2, pp. 183 et seq.; Köndgen and Daeniker, supra n. 3, pp. 273 et seq. and p. 289; Guyon, supra n. 18, p. 122; Campobasso, supra n. 6, pp. 147 et seq.; Alonso Espinosa, supra n. 6, p. 319, for option rights p. 326; Antunes, supra n. 3, p. 225; for the various alternatives for serving option rights under German law see Schäfer, supra n. 1, pp. 70 et seq.

134 See, e.g., Nowotny, supra n. 2, pp. 183 et seq.; Antunes, supra n. 3, p. 225.

135 Goulding, supra n. 8, pp. 90 et seq.

136 Ibid., p. 91.

137 The shares intended to be converted are to be deposited; see Köndgen and Daeniker, supra n. 3, p. 280.

138 Alonso Espinosa, supra n. 6, p. 326 and p. 328.

139 Guyon, supra n. 18, p. 114; Alonso Espinosa, supra n. 6, p. 314; in this respect for German law see also Schäfer, supra n. 1, p. 65 and p. 75.

140 For this see Krieger in: Münchener Handbuch, supra n. 51, § 23 note 23 (at the end); Schäfer, supra n. 1, pp. 75 et seq., for the issue of the classification of such bonds as forward stock exchange transactions see pp. 82 et seq.

141 For this see Schäfer, supra n. 1 p. 65.

142 Ibid., p. 84; affirming, Krieger in: Münchener Handbuch, supra n. 51, § 63 note 23.

143 Benoît-Moury and Croes, supra n. 13, p. 46.

144 Goulding, supra n. 8, pp. 119 et seq., also p. 110; Campobasso, supra n. 6, p. 143 n. 38 and p. 145; Alonso Espinosa, supra n. 6, p. 304, p. 308 and p. 321; further references for the comparison of laws in Hopt, , “Änderungen von Anleihebedingungen – Schuldverschreibungsgesetz, § 796 BGB und AGBG”, in: Festschrift für Ernst Steindorff (1990) p. 341 n. 3 and p. 345 n. 25Google Scholar; also in WM (1990) 1733 n. 3 and p. 1735 n. 25; Van Ommeslaghe and Van Ryn, supra n. 9, p. 112; Vogel, , “Das Schuldverschreibungsgesetz – Gesetzgeberisches Fossil oder lebendes Kapitalmarktrecht”, ZBB (1996) 321 at pp. 324 et seq.Google Scholar; Zobl, , “Änderungen von Anleihensbedingungen”, SZW/RSDA (1990) 129 at p. 133 n. 18.Google Scholar

145 Antunes, supra n. 3, p. 215.

146 Perrick, supra n. 3, pp. 174 et seq.; Alonso Espinosa, supra n. 6, pp. 307 et seq. and p. 311.

147 Skog, supra n. 3, pp. 255 et seq.

148 So Köndgen and Daeniker, supra n. 3, p. 268.

149 See ibid., pp. 287 et seq.

150 See Zobl, supra n. 144, p. 130.

151 Ibid., p. 133.

152 Ibid., p. 135.

153 Ibid., p. 136.

154 Reichsgesetzblatt [hereinafter: RGBL] 1,691; amended by the law of 14 May 1914 (RGBl. I, 121) regarding the appointment of representatives, Reg of 24 September 1932 (RGBl. I, 447) concerning the proceedings of the meeting and the appointment of representatives, and law of 20 July 1933 (RGBl. 1,523) concerning the applicability to settlements; also in RGBl. III, item 4134-1.

155 For this see Ansmann, , Schuldverschreibungsgesetz (1933)Google Scholar; Barella, , “Die besonderen Schutzrechte der Obligationäre einer Aktiengesellschaft”, BB (1952) 764Google Scholar; Bruns, , “Die Vertretung der Obligationäre gegenüber dem Aussteller, insbesondere in einem über dessen Vermögen eröffneten Konkurs- oder Vergleichsverfahren”, WM (1954) 147Google Scholar; Hopt, supra n. 144, pp. 341 et seq.; also in WM (1990) pp. 1733 et seq.; Koenige, , Gesetz, betreffend die Gemeinsamen Rechte der Besitzer der Schuldverschreibungen, 2nd ed. (1922)Google Scholar; Kümpel, “note 11.81”, in Bank-und Kapitalmarktrecht, supra n. 33; Quassowski, and Schmolder, , Verordnung über die Rechte der Schuldverschreibungsgläubiger (1932)Google Scholar; Schumann, supra n. 19, p. 18; Vogel, supra n. 144, pp. 328 et seq.; Zobl, supra n. 144, pp. 129 et seq.

156 For Switzerland see BG SchweizAG (1988) 76, with an assenting remark by Widmer.

157 Hopt, supra n. 144, p. 349 n. 38 (not included in WM (1990) 1733); Vogel, supra n. 144, p. 330; dissenting for Switzerland Zobl, supra n. 144, p. 133.

158 See for DM foreign bonds (which are not necessarily subject to German law) Hopt, supra n. 144, p. 352; also in WM (1990) 1736; for dividend right certificates see Entscheidungen des Reichsgerichts in Zivilsachen [hereinafter: RGZ] 132, 199 at pp. 204 et seq.

159 See Kümpel in: Bank- und Kapitalmarktrecht, supra n. 33, note 11.82; Vogel, supra n. 144, pp. 333 et seq. (however, the issue should be largely obsolete since the introduction of the Euro and the repeal of § 808a BGB).

160 See Hirte, , “Genußscheine und Kapitalherabsetzung. Anmerkungen zum Klöckner-Urteil des OLG Düsseldorf vom 10. Mai 1991”, ZIP (1991) 1461 at pp. 1467 et seq.Google Scholar; dissenting BGHZ 119, 305 at pp. 313 et seq. = ZIP (1992) 1542 = NJW (1993) 57 (the Klöckner case).

161 See also Schumann, supra n. 19, pp. 121 et seq.

162 See, e.g., Vogel, supra n. 144, p. 321 (who refers to the “Schuldverschreibungsgesetz”, which deals with it, as a “large forgotten special law”); likewise Van Ommeslaghe and Van Ryn, supra n. 9, p. 112; but see also Hirte, supra n. 160, pp. 1467 et seq.

163 For Belgium Benoît-Moury and Croes, supra n. 13, p. 46.

164 Guyon, supra 18, p. 121.

165 Alonso Espinosa, supra n. 6, p. 300

166 Guyon, supra n. 18, pp. 120 et seq. as well as p. 122.

167 Benoît-Moury and Croes, supra n. 13, p. 47.

168 Goulding, supra n. 8, pp. 97 et seq.

169 Benoît-Moury and Croes, supra n. 13, p. 48; Guyon, supra n. 18, p. 120; Alonso Espinosa, supra n. 6, pp. 320 et seq. and p. 327; Antunes, supra n. 3, p. 236.

170 Campobasso, supra n. 6, p. 136, p. 144 and p. 145.

171 Ibid., p. 142; apparently dissenting from Spain, Alonso Espinosa, supra n. 6, p. 321.

172 Antunes, supra n. 3, p. 235; for the situation in the United States, which is clearly different (no absolute prohibitions) see Van Ommeslaghe and Van Ryn, supra n. 9, p. 119.

173 Alonso Espinosa, supra n. 6, p. 323.

174 Nowotny, supra n. 2, pp. 180 et seq.

175 Cf. Krieger in: Münchener Handbuch, supra n. 51, § 63 note 19.

176 Perrick, supra n. 3, p. 160.

177 Goulding, supra n. 8, p. 95.

178 Campobasso, supra n. 6, p. 144; concerning Portugal see Antunes, supra n. 3, p. 237.

179 Antunes, supra n. 3, p. 237.

180 Nowotny, supra n. 2, p. 180.

181 For this see Van Ommeslaghe and Van Ryn, supra n. 9, p. 119.

182 Alonso Espinosa, supra n. 6, p. 328.

183 Skog, supra n. 3, p. 254, concerning Denmark p. 263.

184 In this respect with convincing criticism from Köndgen and Daeniker, supra n. 3, pp. 285 et seq.

185 Guyon, supra n. 18, p. 120; with criticism Alonso Espinosa, supra n. 6, p. 322.

186 Hirte in: Groβkommentar, supra n. 14, § 216 AktG note 77; Hirte, supra n. 160, pp. 1465 et seq.; Krieger in: Münchener Handbuch, supra n. 51, § 63 note 19; Nowotny, supra n. 2, p. 179 and pp. 181 et seq., for option bonds pp. 189 et seq.

187 Campobasso, supra n. 6, p. 143 and p. 144; Alonso Espinosa, supra n. 6, p. 322; Antunes, supra n. 3, p. 235 and p. 236.

188 Köndgen and Daeniker, supra n. 3, p. 295.

189 BenoTt-Moury and Croes, supra 13, p. 49.

190 Perrick, supra n. 3, p. 167; Campobasso, supra n. 6, p. 133.

191 Supra n. 69.