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obligatorische Genußrechte

English translation: [mandatory?] profit-participation rights

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22:41 Apr 2, 2002
German to English translations [PRO]
Bus/Financial
German term or phrase: obligatorische Genußrechte
Mentioned along with "eigenkapitalähnliche Genußrechte" in an Austrian text. A definition I found on the Web: "Die Genußrechte räumen einen obligatorischen anteiligen Anspruch am mit dem erhaltenen Genußrechtskapital gebildeten Gesamtvermögen (inklusive Vermögenszuwächsen und stillen Reserven) ein."
Daina Jauntirans
Local time: 09:25
English translation:[mandatory?] profit-participation rights
Explanation:
The standard translation of "Genussrechte" is "profit-participation rights"; basically, these are somewhere in between a bond an a share. From a technical point of view, a PPR resembles a bond, in as much as it represents a right to repayment, and usually the payment of a percentage return. However, this "coupon" is a right to participate in a company's profit - if the company makes a loss, there's no "coupon" payment, and even the right to repayment is affected. (Should the company subsequently return to profit, this must be used to (i) replenish any diminution of the notional principal of the PPR's and (ii) to pay any return that wasn't paid.) PPR's do not have voting rights.

What confuses me here is "obligatorisch" - this might be a special feature of Austrian company law.

Could you perhaps add the text where this is mentioned?
Selected response from:

Ralf Lemster
Germany
Local time: 16:25
Grading comment
Thanks for the definition. I am still looking into this term.
1 KudoZ points were awarded for this answer

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Summary of answers provided
4dividend right with share optionKlaus Dorn
4 -1The right to quiet enjoymentgangels
2[mandatory?] profit-participation rights
Ralf Lemster


Discussion entries: 1





  

Answers


15 mins   confidence: Answerer confidence 4/5Answerer confidence 4/5
dividend right with share option


Explanation:
I found this:

"Bei diesem Bezugsrecht handelt es sich lediglich um ein Instrument zur Verhinderung der Kapitalverwässerung, nicht jedoch zum Erhalt eines bestimmten Stimmrechtsanteil, denn Genußscheine haben ihrer Natur nach kein Mitspracherecht. Die Aktionärsrechte können aber durch die Emission von Genußscheinen dahingehend beeinflußt werden, daß den Genußrechtsgläubigern Anteile am Liquidationsüberschuß zugestanden werden und somit ein zusätzlicher Anspruch auf ein und dieselbe Vermögensmasse zu Lasten des Aktienkapitals geschaffen wird. Wird in Genußscheinen das Recht auf Wandelung in Aktien verbrieft, so ist das Bezugsrecht ohnehin obligatorisch."

So, how do we translate it?

Dividend rights with share-option would be my closest guess.

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Note added at 2002-04-02 23:00:00 (GMT)
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http://www.hausarbeiten.de/rd/archiv/bwl/bwl-genuss.shtml

Klaus Dorn
Local time: 17:25
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in pair: 1514
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1 hr   confidence: Answerer confidence 4/5Answerer confidence 4/5 peer agreement (net): -1
The right to quiet enjoyment


Explanation:
is standard legalese in US real estate sales contracts for "Genußrechte"

gangels
Local time: 08:25
Native speaker of: Native in EnglishEnglish, Native in GermanGerman
PRO pts in pair: 5465

Peer comments on this answer (and responses from the answerer)
disagree  Beate Lutzebaeck: The context is not real estate (and even there you don't talk about Genußrechte in German), but the various rights in a company's capital (here: profit-sharing rights).
2 hrs
  -> You're right, it's stock options (to senior management) with which to buy at a preferential price. One of the many perks to make the rich richer.
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6 hrs   confidence: Answerer confidence 2/5Answerer confidence 2/5
[mandatory?] profit-participation rights


Explanation:
The standard translation of "Genussrechte" is "profit-participation rights"; basically, these are somewhere in between a bond an a share. From a technical point of view, a PPR resembles a bond, in as much as it represents a right to repayment, and usually the payment of a percentage return. However, this "coupon" is a right to participate in a company's profit - if the company makes a loss, there's no "coupon" payment, and even the right to repayment is affected. (Should the company subsequently return to profit, this must be used to (i) replenish any diminution of the notional principal of the PPR's and (ii) to pay any return that wasn't paid.) PPR's do not have voting rights.

What confuses me here is "obligatorisch" - this might be a special feature of Austrian company law.

Could you perhaps add the text where this is mentioned?


    Own professional experience in the financial markets
Ralf Lemster
Germany
Local time: 16:25
Native speaker of: German
PRO pts in pair: 2684
Grading comment
Thanks for the definition. I am still looking into this term.
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