Berlin, Germany - 29 August 2011
The power change at the head of Berlin's Adlon-Fonds attempted by Berlin attorney Thomas Fritsch has failed. At the firm's general meeting, 74% of the investors confirmed Anno August Jagdfeld as managing director. The majority of investors also voted not to distribute the profits, but to increase the €15 million reserve being held to repay a €160 million loan in 2016.
Fritsch, who represents about 200 investors, had proposed a plan that would convert the holding company from management by a single person – until now Jagdfeld – to management by a board. However, such a change in corporate structure would have led to the fund's assets being taxed as operating assets and thus result in additional tax burdens for the investors. Controversies have arisen due both to high fund losses, which is invested in Berlin's Hotel Adlon, and to the business practices of Jagdfeld and of family members who are also in the firm.