German court upholds mandatory CEO retirement age of 70 after years of legal battles
A long-running legal dispute over a mandatory retirement age for CEOs has reached its conclusion. The Federal Court of Justice upheld a 2022 shareholder resolution setting an age limit of 70 for CEOs, dismissing claims that it breached equal treatment rules. The ruling is now final, ending years of litigation between shareholders and the company.
The case began when shareholders inherited or received as gifts their stakes in a corporate group established in 1980. They argued that the company's founding agreement granted lifelong rights to serve as CEOs. Their challenge centred on a 2022 resolution introducing a compulsory retirement age of 70 for these roles.
The Regional Court initially dismissed the lawsuit, and the 26th Civil Senate later rejected the appeal. The plaintiffs claimed the resolution violated the General Equal Treatment Act (AGG) by permitting termination without notice once an employee qualified for a pension. However, the court ruled that the amendment applied equally to all shareholders, preventing unjustified discrimination.
The Senate also clarified that the principle of equal treatment in corporate law does not require special rights granted to founding shareholders to extend indefinitely to future generations. With the Federal Court of Justice refusing leave to appeal, the decision now stands as final.
The final ruling confirms that the age limit for CEOs does not breach equal treatment or AGG provisions. All shareholders remain equally bound by the amendment, regardless of their original rights. The case closes without further legal recourse for the plaintiffs.
