Zweckgesellschaften

Zweckgesellschaften is a term used in German law to describe a type of private company that is organized for the purpose of achieving a specific objective, such as the construction of a building or the operation of a business. The term translates to "purposes society" in English, although this does not fully convey the nuances of the concept.

A Zweckgesellschaft can be formed for a wide range of purposes, including the construction of infrastructure projects, such as bridges, roads, and public transportation systems. It can also be used for more general business purposes, such as operating a hotel or a restaurant. In each case, the primary objective of the company is to achieve a specific goal, rather than to make a profit for its shareholders.

Zweckgesellschaften are typically allowed to operate for a specific period, after which they are dissolved and their assets are transferred to the responsible authority or a successor company. This type of company is often used in the public sector, particularly for infrastructure projects, as it allows for flexibility and efficiency in project management.

Some of the key characteristics of Zweckgesellschaften include the fact that they can be formed for a wide range of purposes, that they are typically allowed to operate for a fixed period, and that they are dissolved once their objective has been achieved. This type of company is an important tool in German law for achieving specific policy objectives, particularly in the public sector.