Inside Stibbe

Paul Quist obtains his PhD with a thesis on 'Conversion and Shares'

Paul Quist obtains his PhD with a thesis on 'Conversion and Shares'

Paul Quist obtains his PhD with a thesis on 'Conversion and Shares'

26.04.2018 NL law

On 24 April 2018, Paul Quist obtained his PhD at the Radboud University Nijmegen with a doctoral thesis on 'Conversion and Shares'. His thesis extensively describes three forms of conversion: conversion of shares into shares of another type (class) or indication, conversion of reserves into shares and conversion of debt into shares (debt/equity swaps), which has been published in a book by Kluwer. 

Quist's clearly written book extensively covers all types of conversion, including not only the company law aspects but also the relevant property law and contract law. Because many of the examples are from day-to-day practice, this book is an asset for any lawyer, tax lawyer or auditor practising or interested in Dutch company law.

Conversion and Shares

Conversion of shares is commonplace and involves a share being converted into one or more shares of a different type or designation, or into a different nominal value. Reserves or debts are also frequently converted into shares. However, until now, these types of conversion have not been examined in a methodical study that connects theory and practice.

An important conclusion of the doctoral research is that an amendment to the articles of association or a statutory conversion regulation is required for conversion of shares. According to Quist, a conversion regulation in the articles of association must be regarded as a conditional amendment to the articles of association whereby the rights and obligations attached to the shares can be changed. The rules of minority protection do not apply to conversion on the basis of a conversion regulation in the articles of associations, but do apply to the introduction in the articles of association of a conversion regulation.

With regard to the conversion of a reserve into shares one of the findings is this conversion cannot be regarded as a payment in cash on the shares or as a payment in kind. It is a ‘sui generis’ type of capital formation to which the rules of capital protection do not apply.

Furthermore, Quist reached the conclusion that settlement in view of the conversion of debt into shares can take place with regard to shares issued by the formation and is even imaginable before the formation itself.

Paul Quist's book can be ordered on the website of Kluwer.

Related news

18.03.2019 NL law
Steven Hijink over vertrouwen en transparantie in het ondernemingsrecht

Articles - Steven Hijink sprak op 9 november 2018 zijn inaugurale rede uit met als titel: 'Vertrouwen en transparantie' – de complexe verhouding tussen transparantieverplichtingen en vertrouwen in het ondernemingsrecht. De bewerkte tekst van zijn oratie is gepubliceerd in Ondernemingsrecht. Tevens gaf hij naar aanleiding van zijn oratie kortgeleden een interview in Spotlight, het vaktechnisch bulletin van PwC over accountancy.

Read more

12.03.2019 LU law
Entry into force of the RBE Regulation and update

Articles - The Grand-Ducal Regulation of 15 February 2019 on the registration, payment of administrative fees and access to information recorded in the register of beneficial owners (the “RBE Regulation”) entered into force on 1 March 2019 and depicts the practical aspects of the Law of 13 January 2019 establishing a beneficial owner register (the “RBE Law”). Another document, the LBR Circular 19/01 (the “Circular”) issued by the Luxembourg Business Registers on 25 February 2019  further describes the new register of beneficial owners (the “RBE”) with the aim of helping users. 

Read more

05.03.2019 NL law
AFM-verkenning “Kwetsbaarheden in de structuur van de accountancysector”

Articles - Op 21 november 2018 publiceerde de AFM een rapport naar aanleiding van een door haar uitgevoerd verkennend onderzoek naar de “kwetsbaarheden” in de structuur van de accountancysector. Diezelfde dag kondigde de Minister van Financiën aan, mede in het licht van de bevindingen van de AFM, dat een onafhankelijke “Commissie toekomst accountancysector” zal worden ingesteld.

Read more

Our website uses cookies: third party analytics cookies to best adapt our website to your needs & cookies to enable social media functionalities. For more information on the use of cookies, please check our Privacy and Cookie Policy. Please note that you can change your cookie opt-ins at any time via your browser settings.

Privacy – en cookieverklaring