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The term or English cash Pooling designates a company internal liquidity reconciliation by a central finance management, which offers credits to the parts of the enterprise in the company for the covering of liquidity gaps. It is an element cash management. The pool fed by excess liquidities of all parts of the enterprise.
Only if enterprise-internal liquidity reconciliation is not sufficient for the preservation of the solvency, an access to external money and capital markets takes place.
Advantages:
The interest optimization is obtained by the actual transfer of the funds between a central master account and the individual auxiliary accounts of the parts of the enterprise. One speaks in this connection also of the physical cash Pooling or "Zero Balancing".
The interest optimization is reached by the fictitious Gegenverrechnung of the valutarischen balances of the auxiliary accounts. It does not take place an effective transfer of the balances on the master account. The balances of the auxiliary accounts are only compensated fictitiously and the interest at the master account are effectively computed. This kind cash of the Poolings is also called "Notional Pooling".
The experiences with cash Pooling in the last years showed that the legal basic conditions for transnational cash management of systems are not even within the European union sufficiently harmonized. In addition it comes that in the juridical systems of most new member states are not yet so one on the other co-ordinated the right areas substantial for cash Pooling that clear recommendations for the organization of a pool are possible for cash.
A characteristic example of the differences in the right development is the principle of the principal attitude in Germany and in Austria. The German Federal High Court in civilian and criminal actions makes ever stricter demands against the validity of credits within a company on ("of Bremen volcano"). This showed up also in two newer judgements from 16 January 2006 (II ZR 75/04 and 76/04), in which the BGH stated that the principle under company law of the capital applying applies also in the cash pool system. This makes the capital applying for a society in a cash pool company very problematic.
Into Austria however the own capital funds spare law (EKEG) stepped into force, which gives at least some guidelines for it, how cash Pooling can be operated also in the crisis of a company. The relationship between own capital funds spare right and the prohibition of the insert restitution ("Fehringer decision"), developed further by the OGH, in addition, remains further unclear in Austria.
In practice this juridical insecurity could not stop the triumphant advance cash of the Pooling. The need of most companies after a functioning cash management was more important in many cases than clear clarifying of all legal questions. Often also the actual balance of power may have been crucial in a company for the introduction and arrangement cash of the Pooling. Nevertheless: Some basic rules should be considered with each cash Pooling.
In the introduction phase worked satisfactorily to be sent and a Workshop organized questionnaires to all future pool participants, in the structure and function mode cash of the Pooling be described. Questions, which are often placed thereby, refer to the pro and cons for each pool company, the personal adhesion of the managing directors, the progressive rate of the being and credit interest, which evaluation of the soil quality answers within the cash Pooling etc. these questions satisfying, stand to the successful introduction cash of a Pooling nothing more in the way.
There are however some right ranges, within which also within of Austria can be given at present no satisfying answers to the topic cash Pooling. In addition for instance the question belongs whether the enterprise cash of a Pooling requires a bank concession, or how right fees can be avoided. The correct construction cash of the Pooling is crucial for it whether these juridical insecurities lead to difficulties. The legislator is thus in these ranges requested to facilitate meaningful cash management between connected enterprises. Straight for regional cash Pooling in South-east Europe would be Austria for practical reasons a suitable location.
Pad Barbara et al.: Cash Pooling. Modern liquidity management from financialeconomical, legal and fiscal view, 2. Edition, lime tree publishing house, Vienna, 2004.
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