Insight
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Insight
Positive ruling by the Federal Court of Justice on call options in management participation programs (MPPs)
The Federal Court of Justice (BGH) has issued a statement on the validity of free termination clauses and thus on call options in the context of PE management participations. In this context, the BGH overturned a ruling by the Munich Higher Regional Court (OLG) and remitted the matter for a new decision. The ruling deals with the practically significant question of which aspects must be considered when assessing the validity of call option clauses. In particular, the BGH examines the economic purpose of management participation programs.
in: Private Equity Magazin, www.pe-magazin.de, March 12, 2026
