HR-aspecten bij M&A transacties

Mr. Nele Van Kerrebroeck (Linklaters)

Webinar op donderdag 16 mei 2024


Aandeelhoudersovereenkomsten
in het licht van de nieuwe wetgeving

Mr. Michaël Heene (DLA Piper)

Webinar op vrijdag 31 mei 2024


Ondernemingsstrafrecht:
wat wijzigt er door boek I en boek II van het Strafwetboek?

Mr. Stijn De Meulenaer (Everest)

Webinar op dinsdag 11 juni 2024

To Opt-In or not To Opt-in? That is the question (K law)

Author: Frank Cleeren (K law)

Publication date: 05/04/2019

On 1 January 2020 the new Belgian Company Code (BCC) will apply to all existing companies.

A company can however decide to apply the BCC as early as 1 May 2019 by modifying its articles of association and making use of the “opt-in” mechanism.

What does this mean? Below are a number of reasons why a company might consider to opt-in:

+ More dividend distributions are possible (a private limited liability company will also be able to distribute interim dividends)

+ The possibility of having only one shareholder for a private and public limited liability company

+ More discretion to allocate profits and introduce multiple voting rights

+ Broader field of application for the contribution of labor

+ The so-called leonine clause becomes more limited in scope (i.e. a shareholder can be exempted from any losses and is excluded from certain enterprise risks)

+ A public limited liability company can be managed by one director

+ A public limited liability company can be managed by a dual board (i.e. a supervisory board and an executive board)

+ Withdrawal by/exclusion of shareholders at the expense of the company’s assets becomes possible

+ Enforceability between the parties on price determination clauses of shares in the event of disputes

+ Broader application of written resolutions

+ Less restrictions on share buybacks

+ Rules on the dismissal of directors ad nutum become less strict

+ Shares of a private limited liability company can be freely transferred

+ Simplification on the rules to call the general meeting.

Choosing for an opt-in brings along some consequences, such as:

– The application of tighter rules on the appointment of directors

– The introduction of a liquidity test in the event of distributions in a private limited liability company

– The permanent representative of a director must always be a physical person

– The occurrence of joint director’s liability in the event of negligence

– A hold harmless clause in the event of director’s liability will no longer be possible

– Stricter abstention rules in the event of a conflict of interest apply.

K law will gladly assist you in this process. Please also visit our website.

Read the original article here

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