When drafting the individual standard documents, the representatives of the German Standards Setting Institute ensure that the respective working group is staffed with experts from different backgrounds and that the interests of the different sides are represented by specific members of the working group, e.g. representatives of the companies and start-ups, business angels and venture capitalists. The legal leadership of the working group lies with at least one reputable law firm. In addition, the participation of institutions that are as neutral as possible and experienced in the field is desirable. The standard documents are generally written in both German and English.
They enable users to create a complete (contract) document in the shortest possible time and with the least amount of purely editorial adjustments, i.e. in particular the insertion of the parties’ data and the economic parameters. The places that need to be individualized in each case are marked in the documents by square brackets.
It is important to note that the standard documents cannot replace individual legal and tax advice. For instance, someone who is dealing with the topic of convertible loans for the first time, whether as an angel or a start-up, will likely need expert advice for overall understanding, but the standard document can also help them to find their way around more quickly and to better identify the need for advice.
The standard contract for convertible loans consists of four parts: the introductory instructions for use, which should be read in advance in order to understand them, the shareholders’ resolution authorizing the taking out of convertible loans, the actual convertible loan agreement, and the conversion obligation.
Standard contract & working group