The Modernisation Of Luxembourg Company Law: The Confirmation Of Practice
Luxembourg's Companies Act 'reform bill' adopted in July 2016 includes formal confirmation of measures which provide increased flexibility for companies.
On 13 July 2016, the Luxembourg Parliament formally adopted the so-called 'reform bill' that aims to modernise the Luxembourg Companies Act of 10 August 1915. The Bill serves to both confirm unwritten practice in the current legal framework and introduce a number of new rules aimed at increasing the flexibility of doing business in Luxembourg; making the country even more attractive as an international business centre.
Formal confirmation of practice
Formal confirmation of practice measures put in place makes the following now possible in Luxembourg:
One-step dissolution. However, this implies additional conditions which will be outlined in the next update in this series Tracking shares, ie. shares that are linked to a specific asset of the company, are allowed (art. 1853 Code Civil) Warrants/convertible bonds and their conversion into shares now officially recognised and regulated (art. 32-4) Redeemable shares now officially recognised for S.à r.l. (art. 182 (2)) Founder shares now officially recognised for S.à r.l. (art. 183 (1) 2°) Interim dividends now officially recognised for S.à r.l. (art. 198bis)...
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