- Adam Opel GmbH labour representatives to form AG with a say in new company
Lovells has advised the Chairman and the members of the group works council (Konzernbetriebsrat) of Adam Opel GmbH, on the establishment of a German stock corporation or 'AG' to represent its interest following the restructuring of General Motors (GM).
The AG will be responsible for negotiating the equity stock to be held by employees following the envisaged restructuring of Adam Opel GmbH under the GM bankruptcy. It will subsequently be responsible for the administration of the employees' shares in Adam Opel GmbH (to be converted into AG).
The management bodies of the corporation will be staffed with legal advisers of the group works council and workers' representatives from all locations. The intention is that this vehicle will allow employees to play a role in the running of New Opel via this vehicle.
In a statement the Vice Chairman of the supervisory board and Chairman of the group works council, Klaus Franz, said the establishment of the AG is "a completely new way of ensuring employees' participation in accordance with their contribution to the company's reorganisation."
Michael Witzel and Ruth Zehetmeier-Müller, Corporate Partners in Munich, led the Lovells team. They were assisted by Jörn Biederbick, Corporate Senior Associate and Falck Loose, Tax Counsel.
Commenting on the matter, Michael Witzel said:
"As our client has observed, this is a new way of doing things and as such demonstrates our ability to provide innovative advice to our clients even in the most challenging markets. If this model is successful it would not surprise me to see it adopted in other restructurings."
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