Short Reads

Luxembourg adopts measures to facilitate holding of meetings in companies and other legal entities during “Covid-19”

Luxembourg adopts measures to facilitate holding of meetings in compa

Luxembourg adopts measures to facilitate holding of meetings in companies and other legal entities during “Covid-19”

23.03.2020 LU law

Luxembourg adopted a Grand-Ducal Regulation on March 20th, 2020 introducing emergency measures relating to the holding of meetings in companies and other legal entities. The relevant provisions, which are effective immediately, pertain to general meetings of shareholders and to other deliberating bodies of companies.

Alternatives to physical general meetings

Notwithstanding any provisions to the contrary in a company’s articles of association, a company may, regardless of the number of participants, convene a general meeting without being physically present, and require its shareholders or partners and other participants at the meeting to participate and to exercise their rights exclusively:

  • by voting in writing from a remote location or in electronic form provided that the full text of the resolution(s) or decision(s) to be taken have been published or communicated to them;
  • through an agent appointed by the company; or
  • by video conference or other means of telecommunication allowing their identification.

In the event a shareholder or partner of a listed entity has appointed an agent to represent it at a general meeting other than as stated under item 2 above, such agent may only participate at such meeting in the manner provided for above.

Shareholders or partners who participate by such means will be deemed to be present for the computation of the quorum and the majority requirements at such meeting.

The above provisions apply mutatis mutandis to meetings of bondholders.

Additional flexibility for meetings of other corporate bodies

Notwithstanding any provision to the contrary in its articles of association, the other corporate bodies of any company, such as the board of directors of a public limited liability company or the board of managers of a private limited liability company may hold meetings, without being physically present:

  • by written circular resolutions; or
  • by video conference or other means of telecommunication allowing the identification of the members of the corporate body participating in the meeting.

The members of these corporate bodies who participate by such means are deemed to be present for the computation of the quorum and the majority requirements at such meeting.

Additional flexibility in connection with the approval and filing of annual accounts

Notwithstanding any provision to the contrary in its articles of association, any company is authorized to convene its annual general meeting for the later of the following dates: (i) a date within a period of six months after the end of its financial year, or (ii) a date within a period ending June 30th, 2020.

The company is empowered to take such decision for any meeting convened for June 30th, 2020 at the latest. Any company having already convened a meeting and taking such decision, must proceed to the publication of such decision and, where applicable, notify its shareholders or partners or other participants in the same manner such shareholders or partners or other participants have been convened to this meeting or by publication on its website at the latest on the third business day prior to the meeting.

This measure is to be read in conjunction with the additional administrative period of four months that is granted to companies to file their financial data with the Luxembourg Register of Commerce and Companies at the standard rate of EUR 19 excl. VAT (excluding registration fees and the CNC administrative tax). Increased costs and penalties for late filing of financial data are exceptionally suspended until November 30th, 2020, provided that the filing request is made with a delay of up to four months maximum. For example, the filing of annual accounts for a company whose financial year ended on December 31st, 2019, will be subject, until November 30th, 2020, to an administrative fee of EUR 19 excl. VAT as opposed to a fee of up to EUR 200. A EUR 500 fee would still apply for late filing after four months.

Team

Related news

10.09.2021 NL law
Nieuwe verplichting onder de NOW-4: de overeenkomst ten aanzien van de uitvoering van het bonus- en dividendbeleid

Short Reads - Met de laatste tranche van de Tijdelijke noodmaatregel overbrugging voor behoud van werkgelegenheid (“NOW-4”) is een nieuwe aanvullende verplichting geïntroduceerd voor het bonus- en dividendverbod. Het bonus- en dividendverbod is een van de meest vergaande verplichtingen onder de NOW en is onderwerp van veel maatschappelijke discussie. 

Read more

29.09.2021 NL law
Gebrekkige informatievoorziening aan de ondernemingsraad bij overnamefinanciering: belangenafweging en beweegredenen

Short Reads - In deze bijdrage bespreekt Ea Visser de beschikkingen inzake Estro en PCM. Daarna gaat zij in op het politieke initiatief dat is genomen inzake de rechten van de OR bij private-equitytransacties en de reactie daarop. Ea bespreekt aan de hand van de Estro-zaak de relatie tussen de belangenafweging van het bestuur en de beweegredenen die moeten worden opgenomen in een adviesaanvraag volgens de Wet op de ondernemingsraden (WOR). Vervolgens gaat zij in op de manier waarop partijen bij een overnamefinanciering de bevindingen uit de Estro-zaak kunnen toepassen in de praktijk.

Read more

08.09.2021 NL law
COVID-19-vaccinatieplicht: tijdig regelen

Short Reads - Doordachte wetgeving is geen overbodige luxe als de nood aan de man is, zo leerden de ‘hoogtijdagen’ van de corona-crisis ons. Er zijn in dat licht minstens twee redenen om de herhaalde politieke afwijzing van een COVID-19-vaccinatieplicht te heroverwegen en er voor te zorgen dat een dergelijke plicht in de gereedschapskist van de pandemiebestrijding zit voor het geval de situatie weer uit de hand dreigt te lopen.

Read more

20.09.2021 NL law
AFM: Beleggingsfondsen kunnen beleggers beter informeren over duurzaamheid

Articles - Beleggingsfondsen kunnen beleggers beter informeren over duurzaamheid. De informatieverschaffing van fondsen over duurzaamheidsrisico’s en duurzaamheidskenmerken is nog vaak te algemeen, daardoor krijgen beleggers te weinig inzicht in waar ze in investeren. Dat is een van de conclusies van de Autoriteit Financiële Markten (AFM) in een verkennend onderzoek naar de toepassing van de Sustainable Finance Disclosure Regulation (SFDR).

Read more