Rendering (Once More) the Financial Assistance Regime More Flexible

Strampelli Giovanni
Additional contact information
Strampelli Giovanni: Assistant professor of Company Law at Bocconi University, Milan.

European Company and Financial Law Review, 2012, vol. 9, issue 4, 530-570

Abstract: Directive 2006/68/EC eliminated the ban on financial assistance imposed by article 23 of Directive 77/91/EEC. The new formulation of article 23 allows Member States to authorize public limited liability companies to undertake financial assistance transactions, provided that they provide adequate safeguards to the (minority) shareholders and to third parties. Various Member States have not exercised this option and many authors have criticised the text of article 23 of the second Directive. The conditions set forth in article 23 aim to protect minority rights and creditor rights are considered excessively rigid and create an obstacle to the effective simplification of the regulations governing financial assistance. This article suggests possible modifications to article 23 of the second directive which could render the financial assistance regime more flexible without prejudicing the interests of both shareholders and creditors. This compromise solution ensures an adequate balance between flexibility and certainty and appears preferable to the proposed elimination of all financial assistance regulation.

Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1515/ecfr-2012-0530 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:eucflr:v:9:y:2012:i:4:p:530-570:n:4

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ecfr/html

DOI: 10.1515/ecfr-2012-0530

Access Statistics for this article

European Company and Financial Law Review is currently edited by Heribert Hirte

More articles in European Company and Financial Law Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().