Document background
The Circular Resolution Of Shareholders is a critical corporate governance tool used in German business practice when decisions need to be made by shareholders outside of regular general meetings. This document type is particularly useful when immediate decisions are required or when organizing a physical meeting would be impractical. It's commonly used for time-sensitive matters such as approving major transactions, appointing directors, or making structural changes to the company. The document must comply with German corporate law, particularly the GmbHG for limited liability companies or AktG for stock corporations, and typically includes detailed information about the proposed resolutions, voting procedures, and required majorities. Electronic circulation and signature are increasingly common, subject to compliance with German electronic signature laws.
