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

15 Pages Posted: 7 May 2009 Last revised: 6 Jul 2009

See all articles by Christoph Van der Elst

Christoph Van der Elst

Tilburg Law School; Ghent University - Department of Business Law; European Corporate Governance Institute (ECGI)

Date Written: February 1, 2009

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

Suggested Citation

Van der Elst, Christoph, The Modified Belgian Framework for Contributions in Kind, Share Buy Backs and Financial Assistance (February 1, 2009). TILEC Discussion Paper No. 2009-025, Available at SSRN: https://ssrn.com/abstract=1400530 or http://dx.doi.org/10.2139/ssrn.1400530

Christoph Van der Elst (Contact Author)

Tilburg Law School ( email )

Tilburg, 5000 LE
Netherlands

Ghent University - Department of Business Law ( email )

Universiteitstraat 4
Gent, B-9000
Belgium

European Corporate Governance Institute (ECGI) ( email )

c/o the Royal Academies of Belgium
Rue Ducale 1 Hertogsstraat
1000 Brussels
Belgium

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