PE information brief

A new Law, dated June 10, 2009 on cross-border mergers and on the share capital of public limited companies amends the consolidated Luxembourg Company Law in respect to the creation, the maintenance and the alteration of share capital. One of the main impacts is the possible exemption of the contribution in kind audit report, as well as additional flexibility on acquisition of own shares by public limited companies. The amendments to the commercial law also introduces the concept of partial divisions (through share capital reduction), that should be regarded as neutral from a tax perspective, and deals with the standardisation of the conditions applicable to national and cross-border mergers. Finally, the amendments will also allow, under certain circumstances, situations that may be classified as financial assistance.

Back to index