The Modified Belgian Framework for Contributions in Kind, Share Buy Backs and Financial Assistance

Abstract

This paper provides a brief overview of the European capital requirements and the modernising changes contained in Directive 2006/68/EC. Next the Belgian transposition is discussed. The new rules on contributions in kind, share buy backs and financial assistance to acquire the company’s shares look promising. However, the conditions for setting the requirement of the expert’s report for a contribution in kind aside are too complicated. Further, the new limitation on buying back shares is too restrictive. The financial assistance rules have improved significantly. Only the requirement to publish in extensor the director’s report should be reconsidered.

Keywords: Second Company Law Directive, Belgium, legal capital, contribution in kind, share buy backs, financial assistance

JEL Classification: K22