Imagine… 💭 You are the CFO of a multinational with a successful Belgian subsidiary that has built up substantial financial reserves. You would like to use those reserves for a different purpose within the group and so you wish to carry out a significant distribution.

You ask your colleagues from Legal to do whatever is necessary, but they inform you that such a distribution isn´t possible just like that. For tax reasons (US “check-the-box” rule) it was decided to set up the Belgian subsidiary in the form of a BVBA/SPRL (a private limited liability company). However, the Belgian company law has recently undergone some fundamental changes, and this company has now been transformed into a BV/SRL (as new private limited liability company). This legal form is now subject to a very flexible regime and no longer has any capital requirements, which is very helpful for the contemplated distribution. But, in order to be able to make use of the new regime, it will be necessary to first amend the articles of association. Moreover, an amendment of the articles of association still has to be done this year in any case so as to be in compliance with the new Belgian company law.

👉 Read our latest #inthepicture "Time's up: obligatory amendment of articles of association for Belgian companies", written by our counsel Ine Schockaert.

#corporatelaw #WVV #compliance #inthepicture