A quasi-contribution occurs when the company purchases assets or business,
The Companies Code (NL / FR) foresees specific procedures applicable for a public limited liability company, a partnership limited by shares, a private limited liability company and a cooperative limited liability company. These procedures are not applicable in case of purchases that are executed as common business for the entity and at normal market conditions, for purchases on a stock exchange or in case of sales by the judicial authorities.
The control program, the form and content of the report and the tasks of the auditor have been specified in a standard of the IBR/IRE (NL / FR). The auditor may not express an opinion on the value of the purchased assets or their remuneration, but only on the valuation methods used by the company. Neither fcan he/she express a fairness opinion on the operation.
The board of directors has to prepare a specific report justifying the transaction to the shareholders and, if needed, explain why they deviate with the conclusions of the auditor, at their own responsibility.
The reports of the auditor and the board are presented to the general shareholders’ meeting. The transaction is effective only after approval by the shareholders.