The legal consequences of the annulment of decisions of the general meeting of the joint stock company

If the general assembly decisions of joint stock companies are against the law, the articles of association or the rule of good faith, these decisions are annullable. Filing an action for the annulment of a general assembly decision does not prevent the decision from being implemented which means that the decision is applicable until the annulment decision has been given by the court. It is accepted that when the decisions of the general assembly are annulled, the judgment of the court will have a retroactive effect. However, since the decision of the general assembly is applicable until the annulment decision is made, a broad retroactive operation of the annulment decision could highly possibly have adverse impact on the interests of third parties or violate the principle of legal security. Therefore, when the general assembly decisions could have impact on the interests of the third parties or the retroactive application of the annulment decision violates the legal security, the annulment decisions should have an ex nunc effect or a limited retrospective effect.