The legal structure of a Kommanditgeselschaft auf Aktien (partnership limited by shares, KGaA) makes it possible to access the capital market, but – unlike the legal structure of a public limited company – it keeps control in the hands of the family owning the business, just as a partnership would.

The control exercised in a KGaA is characterised by the strong position of the personally liable general partner, who is allowed large freedom of entrepreneurial manoeuvre.

On the other hand, the capital investors, as limited-liability shareholders, are restricted to a few rights of collaboration and oversight. The general partner has an inalienable right to manage the business. Due to its hybrid character, a KGaA also has a mixed position when it comes to the technicalities of profit.

A KGaA offers for family firms a suitable arrangement for the beneficiaries, each of whom will be pursuing his own interests, while at the same time making it possible to finance innovations and thus to secure future returns.

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