Material on this website is © 2012 Deloitte Global Services Limited, or a member firm of Deloitte Touche Tohmatsu Limited, or one of their affiliates. See Legal for copyright and other legal information.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Quasi-Contribution
A quasi-contribution occurs when the company purchases assets or business,
- Within two years after incorporation,
- From a person having constituted the company, a board member, a shareholder or manager of the company, and
- If the value is higher than 10% of the issued share capital.
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.
If the company does not have a statutory auditor, it will have to appoint an auditor member of the IBR/IRE (NL / FR). The auditor has to
- Describe the purchase and
- Review the valuation methods used for the assets and liabilities and
- Indicate that the result of the valuation methodes userd are at least equal to te remuneration.
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.
