Participation report; provision by municipality

Municipalities, counties and districts must prepare an annual report on their shareholdings in companies with a legal form under private law if they own at least five percent of the shares in a company.

In accordance with the provisions of Art. 94 Para. 3 of the Local Government Code (GO), each municipality must prepare an annual report on its shareholdings in companies in a legal form under private law if the shareholding amounts to at least 5%. The same applies to each administrative district in accordance with Art. 82 Para. 3 of the Landkreisordnung (LKrO) and for each district in accordance with Art. 80 Para. 3 of the Bezirksordnung (BezO).

The reporting should focus on information on the fulfillment of the public purpose in accordance with Art. 87 GO (or Art. 75 LKrO or Art. 73 BezO), the shareholding structure, the composition of the corporate bodies, the remuneration of the individual members of the managing corporate body in accordance with Art. 94 para. 1 sentence 1 no. 4 GO (or Art. 82 para. 1 sentence 1 no. 4 LKrO or Art. 80 para. 1 sentence 1 no. 4 BezO), the earnings situation and borrowing.

The participation report of the municipality, county or district does not serve a control function, but is intended to ensure that the fulfillment of municipal tasks remains transparent for the municipality and for the citizens despite spin-offs under private law.