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Stilla, Angelo (2017) Determining the Indemnity of Retiring SME Owners in Germany: Taking into Account SMES’ Specific Characteristics. DBA thesis, University of Gloucestershire.
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Text (Final thesis)
A. Stilla DBA final thesis redacted for signature only.pdf - Accepted Version Available under License All Rights Reserved. Download (4MB) | Preview |
Abstract
A shareholder’s withdrawal from a small and medium sized enterprise (SME) can significantly impact the financial stability of the company. This may be because the legislator has not provided precise legal specification of how to determine indemnity, or that the compensation regulations implemented in the articles of association do not comply with existing legislative frameworks. The aim of this study is to identify the most suitable valuation method for indemnity determination when taking into account the particular, qualitative characteristics of SMEs and to develop a severance agreement for indemnity regulation that considers the interests of all shareholders, increases clarity and meets the statutory requirements. Previous studies regarding valuation, the characteristics of SMEs and indemnity determination have addressed indemnity regulation from either a legal or business administration perspective. This research however investigates the topic holistically by employing an inductive and qualitative approach through semi-structured one-to-one interviews with experts from different but apposite professions. It then offers an indemnity regulation framework that is consistent with current business research and legal boundaries. This research is hence interdisciplinary, i.e. it takes into account the most suitable valuation methods for SMEs, the interests of their shareholders in cases of retirement and the statutory provision by examining current court decisions. The outcomes contribute to theory and give practical recommendations to SME owners and consultants to enhance the fairness and transparency of the retirement process and reduce the probability of legal disputes. The study demonstrates that SME characteristics should be considered in valuation and consequently when determining the indemnity of the outgoing owner. Furthermore, the outcomes suggest that indemnity regulation is advisable and should be implemented in the articles of association. In cases where compensation regulation exists, a revision is recommended due to the potential unethicality in current statutes.
| Item Type: | Thesis (DBA) | ||||||||||||
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| Uncontrolled Keywords: | Small and Medium enterprises (SMEs); Financial stability; Indemnity; Shareholders; Germany | ||||||||||||
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD2340.8 Small and Medium-sized businesses, artisans, handcrafts, trades H Social Sciences > HG Finance > HG4001 Finance management. Business finance H Social Sciences > HG Finance > HG4501 Investment, capital formation, speculation |
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| Divisions: | Schools and Research Institutes > School of Business, Computing and Social Sciences | ||||||||||||
| Depositing User: | Susan Turner | ||||||||||||
| Date Deposited: | 25 Jan 2019 17:40 | ||||||||||||
| Last Modified: | 01 Aug 2023 14:57 | ||||||||||||
| URI: | https://eprints.glos.ac.uk/id/eprint/6452 |
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