Yes and no. In principle, any association can change the articles of association at any time. This applies to rewriting, adding, supplementing or shortening. However, there are requirements that must be met before the register court checks and approves the amendment to the articles of association. This is an effort that should not be underestimated. Founding members therefore invest a lot of time in writing down the first draft of the association's articles of association. This is because the articles of association define the objectives, processes, authorizations, responsibilities, prohibitions and rules of conduct of the association. Over time, certain circumstances change, making it necessary to amend the articles of association.
According to Section 32 of the German Civil Code (BGB), the general meeting is responsible for amending the articles of association. As always, exceptions prove the rule. If the articles of association contain a clause, the board of directors can also amend the articles of association independently. This is possible to a limited extent in order to make editorial changes in accordance with the requirements of the register of associations or the tax office.
Procedure for amending the articles of association: How to change the articles of association
If the amendment to the articles of association was resolved at the general meeting, it is not yet legally effective. The association is required to check the process of amending the articles of association, document it and have the resolutions entered in the register of associations. This is how the process of amending the articles of association works:
- Preliminary check: You can have the amendment to the articles of association checked by a lawyer, tax consultant or the register of associations and the tax office.
- Announcement / invitation: All members must be invited to the general meeting. The invitation must clearly state the amendment to the articles of association as an item on the agenda.
- Resolution: A resolution to amend the association's articles of association is passed by vote at the general meeting.
- Minutes: The resolution to amend the articles of association must be recorded in writing by a secretary.
- Registration: The amendment to the articles of association, including documents, is registered or applied for at the registry court.
Majority ratios: How a resolution is passed
Before the vote, the old and updated text of the Articles of Association should be read out. The amendments can be released cumulatively for discussion and voting. However, the chair of the meeting - usually the 1st chair - must point out that every member has the right to discuss each individual amendment. If a member requests that the vote be held separately, the articles of association can no longer be put to the vote as a whole. In this case, a separate decision will then be taken on each amendment to the Articles of Association.
The articles of association allow associations to hold required majorities by vote in order to give internal regulations priority over statutory regulations. Each association can decide for itself which majority is required for amendments to the articles of association. If the articles of association do not contain any stipulations regarding majority ratios, Section 33 of the German Civil Code applies:
If three quarters of the members present approve the amendment to the Articles of Association, the amendment is deemed to have been accepted. This does not apply to amendments that affect the purpose of the association. The change of purpose can only be adopted unanimously.
Keeping minutes: How to record the resolution of the general meeting
The exact wording of the amendment to the Articles of Association must be recorded in the minutes. In addition, the result of the vote must be presented as follows:
- Number of votes cast,
- Number of yes votes,
- Number of no votes,
- number of abstentions,
- number of invalid votes.
A log entry can look like this:
The chairman of the meeting read out the part of the amendment to the Articles of Association (new version) and, following an explanation, put it up for discussion.
After the discussion, the chairman of the meeting released the amendment to the Articles of Association (with the following changes) for voting.
The amendment to the Articles of Association was adopted by the members with the following voting result:- Votes cast: 50
- Yes votes: 48
- No votes: 0
- Abstentions: 2
- Invalid votes: 0
The Executive Board is authorized to make amendments to the draft Articles of Association insofar as these are necessary for entry in the register of associations and to maintain non-profit status in accordance with the requirements of the registry court. The Annual General Meeting approved the authorization with 48 votes in favour and two abstentions.