Corona

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By Rob Moulton and Axel Schiemann

ESMA, BaFin, and FCA have provided guidelines on firms’ obligation to record client telephone calls.

Remote working raises uncertainties in various regulated areas as it dramatically changes institutions’ day-to-day business. In particular, institutions are confronted with practical and technical difficulties regarding client-related requirements such as the obligation to tape telephone conversations with clients — which employees working remotely may not be able to do because they lack access to the necessary technical equipment. In order to address these practical difficulties, the European Securities and Markets Authority (ESMA), Germany’s Federal Financial Supervisory Authority (BaFin), and the UK’s Financial Conduct Authority (FCA) have published their regulatory approach with regard to the current situation.

von Rainer Wilke

Wie kann der Lebensmitteleinzelhandel in der aktuellen Situation die Versorgungssicherheit kartellrechtskonform gewährleisten? Welche Formen der Zusammenarbeit sind zulässig?

In Deutschland und auf der ganzen Welt verändert sich aufgrund der Ausbreitung von COVID-19 die gesellschaftliche und politische Lage drastisch. Der Sicherung der Versorgung mit Lebensmitteln und Gegenständen des alltäglichen Bedarfs kommt eine besondere Bedeutung zu. Das gilt auch für das Kartellrecht: So haben unter anderem Großbritannien und Norwegen eine Lockerung der kartellrechtlichen Regeln für Kooperationen zwischen Wettbewerbern im…

by Dr. Thomas Fox, Dr. Tobias Klass, Stefan Süß, Simon Pommer

Several state ministries of finance have issued decrees ruling reliefs to ease the economic burden taxpayers are facing due to COVID-19.

The German government and administration have resolved to pass several measures across all areas of law — including in relation to taxes — in order to ease the economic burden raised by COVID-19. Many businesses have been forced to decrease or even completely shut down their operational activities. The State of Bavaria as well as other federal states (Bundesländer) have also issued a curfew, further limiting ordinary business activities. This economic slowdown will first have negative effects on the affected businesses’ liquidity and financials — a development that will intensify in the coming weeks.

The tax administration has adopted certain tax relief measures to strengthen the affected businesses’ liquidity and support their ongoing business operations. Beginning last week, several state ministries of finance have issued decrees ruling reliefs with respect to the tax assessment procedures and tax payments. On 19 March 2020, the German Federal Ministry of Finance (Bundesfinanzministerium) issued two letters with coordinated and generally applicable rules to support tax payers affected by COVID-19 (For details see BMF re tax reliefs for income tax purposes; BMF re tax reliefs for trade tax purposes).

The resolved measures are described below.

von Dr. Thomas Fox, Dr. Tobias Klass, Stefan Süß und Simon Pommer

In den letzten Tagen (wenn nicht sogar Wochen), hat sich COVID-19 großflächig in Deutschland ausgebreitet und viele Unternehmen dazu gezwungen, ihr operatives Geschäft zu reduzieren oder sogar vollständig einzustellen. Der Freistaat Bayern wie auch andere Bundesländer haben zur Eindämmung der Infektionsraten und der Ausbreitung des Virus Ausgangsbeschränkungen bzw. Kontaktverbote erlassen (weitere Informationen hier). Diese Maßnahmen haben bereits jetzt zu einer erheblichen Einschränkung der Wirtschaftstätigkeit in Deutschland geführt, die wiederum nachteilige Auswirkungen auf die Liquidität und Finanzlage vieler Unternehmen hat – eine Entwicklung, die sich in den nächsten Wochen weiter intensivieren wird.

Die Bundesregierung (in Zusammenarbeit mit den Bundesländern) hat eine Reihe von Maßnahmen beschlossen, um den durch COVID-19 hervorgerufenen wirtschaftlichen Belastungen entgegenzuwirken. Zu diesen zählen auch Entlastungsmaßnahmen im Bereich Steuern, welche insbesondere die Liquidität der von COVID-19 betroffenen Unternehmen stärken und deren laufende Geschäftstätigkeit unterstützen sollen. Konkret hat das Bundesfinanzministerium (in Abstimmung mit den obersten Finanzbehörden der Länder) am 19. März 2020 zwei Schreiben veröffentlicht, in denen die unterschiedlichen Maßnahmen zugunsten der Steuerpflichtigen dargestellt wurden. [Die  BMF-Schreiben finden Sie hier zu Einkommen-/Körperschaftsteuer und Gewerbesteuer].

Die beschlossenen Maßnahmen lassen sich wie folgt zusammenfassen:

by Frank Grell, Dr. Jörn Kowalewski, Dr. Ulrich Klockenbrink

The Federal Ministry of Justice and Consumer Protection (BMJV) is currently finalizing the law to mitigate the consequences of the COVID-19 pandemic in civil, insolvency, and criminal proceedings with extraordinary commitment. It shall be adopted less than two weeks after the beginning of the extensive restrictions on public life and the economy in Germany due to the COVID-19 pandemic.

A central element of the law is to facilitate the raising of debt capital in order to support companies in the current situation. For this purpose:

  • liability risks in connection with the granting of loans are reduced,
  • contestation events under insolvency law are temporarily alleviated with regard to collateralization and redemptions of new financing, and
  • subordination of new shareholder loans is temporarily suspended.

by Prof. Dr. Thomas Grützner, Joachim Grittmann

Companies should consider how to avoid liability risks in light of the measure.

On 22 March 2020, the German federal government agreed with the minister presidents of the federal states (Bundesländer) to introduce nationwide contact bans. However, this action does not exclude the possibility that federal states or individual districts (Landkreise) will continue to issue or maintain stricter regulations. The agreement explicitly provides for such a possibility according to the federal government’s press release. Immediately after the announcement of the agreement on minimum restrictions, the Bavarian state government, for example, announced that it intends to adhere to the stricter regulations already adopted, even if this does not necessarily mean any changes for companies.

Consequently, companies may have to deal with different regulations and different standards of duty —especially if they have establishments (Betriebsstätten) in different federal states, or if employees travel across federal state borders. Companies now have to consider their assortment of duties resulting from the implementation of the regulations adopted — with a focus on how to avoid possible liability risks. Subsequently, they will need to implement various protective measures.

von Prof. Dr. Thomas Grützner und Joachim Grittmann

Flächendeckende Einführung von Kontaktverboten – teilweise gelten strengere Maßnahmen

Die Bundesregierung hat sich am 22. März 2020 mit den Ministerpräsidenten der Bundesländer auf die Einführung von flächendeckenden Kontaktverboten geeinigt. Damit ist jedoch nicht ausgeschlossen, dass Bundesländer oder einzelne Landkreise (weiterhin) strengere Regelungen erlassen bzw. beibehalten. Die Einigung sieht diese Möglichkeit laut der Pressemitteilung der Bundesregierung ausdrücklich vor. Unmittelbar nach Bekanntgabe der Einigung über die Mindestbeschränkungen hat beispielsweise die Bayerische Staatsregierung angekündigt, an den bereits beschlossenen, weitergehenden Regelungen festhalten zu wollen, auch wenn sich inhaltlich dadurch für Unternehmen nicht zwingend etwas ändern muss.

Damit müssen sich Unternehmen, insbesondere wenn sie Betriebsstätten in verschiedenen Bundesländern haben oder Arbeitnehmer über Landesgrenzen hinweg anreisen, ggf. mit unterschiedlichen Regelungen und unterschiedlichen Pflichtenmaßstäben auseinandersetzen. Unternehmen müssen sich nunmehr unmittelbar auch zu ihrem Pflichtenkorsett, das sich aus der Umsetzung der gestern beschlossenen Regelungen, Gedanken machen und verschiedene Maßnahmen umsetzen. Dabei gibt es gegenüber unseren Empfehlungen im Rahmen von Ausgangssperren Besonderheiten zu beachten, um mögliche Haftungsrisiken zu vermeiden.

by Dr. Natalie Daghles, Otto von Gruben, Dr. Stefan Widder, Rainer Wilke

Electronic contract processing enables parties to avoid physical contact.

In Germany and around the world, work processes are changing drastically. Health policy considerations have already prompted many large companies in Germany to increasingly switch to work remotely. For companies that continue their business activities, the rapid change from office to home-based working creates challenges for processes that were previously taken for granted, including contract implementation.

In principle, there is no formal requirement for the conclusion of legal transactions in Germany. Therefore, unless otherwise provided by law, a contract can also be concluded orally. However, the legislator has prescribed a certain form for a large number of legal transactions due to their special significance or in order to protect against haste. Furthermore, the parties to a legal transaction often agree on a certain form.

by Joachim Grittmann

First districts in Bavaria impose curfews — further measures on the horizon.

On 18 March 2020, the District of Tirschenreuth issued a curfew for the town of Mitterteich based on the German Infection Protection Act (Infektionsschutzgesetz, IfSG). A similar measure has been adopted for at least two further municipalities. Meanwhile, the Bavarian state government has publicly considered imposing a curfew for the entire state of Bavaria if necessary. Other federal states (Bundesländer) may soon follow suit.

Since the adoption of a general order (Allgemeinverfügung) in this regard, the territory of the town of Mitterteich is subject to a curfew until 2 April 2020. This means people are generally forbidden to leave home without good reason. However, certain errands (i.e., to cover the needs of daily life) or journeys to and from the workplace remain permitted. Any further curfews are likely to have a similar objective.

Curfews do not just affect private individuals. Businesses will also need to take certain measures.

von Joachim Grittmann

Within the last days several EU Member States published financial support packages and protection shields for companies and businesses to mitigate the economic impact of the COVID-19 outbreak.

However, the Member States are not completely flexible to provide financial support. They must comply with the requirements of EU State aid law. Nevertheless, EU State aid law already provides tools that give the Member States room to navigate its financial support packages. Certain measures are even excluded from…