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Global rules on foreign direct investment (FDI)
Cross-border acquisitions and investments increasingly trigger foreign direct investment (FDI) screening requirements.
Luxembourg | Publication | gennaio 2022
On December 17, 2021, the Luxembourg parliament extended another time the rules described below until December 31, 2022.
On September 23, 2020, the Luxembourg parliament adopted a new COVID-19-related law relating to measures on the holding of meetings in companies and other legal entities (the Covid Emergency Law). The Covid Emergency Law renewed the temporary measures first put in place pursuant to the Grand Ducal Regulation of March 20, 2020, repealed by the law of June 20, 2020, itself superseded by the Covid Emergency Law.
The law of December 17, 2021 now extends the application of the Covid Emergency Law until December 31, 2022 (the Extended Covid Emergency Law).
The Extended Covid Emergency Law allows for meetings of corporate bodies to take place without the physical presence of the participants, as well as for the adoption of circular board resolutions, irrespective of whether or not these measures are provided for in the articles of association of the company. It should ensure maximum business continuity during the pandemic, with due respect for social distancing recommendations and the continued safety of all participants.
According to the Extended Covid Emergency Law, general meetings of shareholders and bondholders can be held without a physical meeting and shareholders and bondholders, as well as other participants, can be compelled to partake in the meeting and exercise their rights in one or several of the following manners:
In addition to companies, the Extended Covid Emergency Law also applies to certain other entities such as non-profit organisations.
No. The flexibility measures are limited to those enumerated by the Extended Covid Emergency Law. Therefore, corporate bodies of a company must ensure that they continue to respect the rules set out in the company law and the company’s articles of association regarding the number and frequency of meetings, any convening formalities as well any quorum and majority requirements.
The Extended Covid Emergency Law specifies that participants who partake in such meetings pursuant to its special rules will be deemed present for the computation of any quorum and majority requirements.
No. These matters are no longer governed by the law of May 22, 2020 on the extension of deadlines for the filing of annual accounts, consolidated accounts and reports relating thereto during the state of crisis. Therefore, Luxembourg companies are again to ensure that, absent any more stringent rules under their articles, their annual general shareholders’ meetings approving the companies’ annual accounts for the previous financial year will be held within six months of the end of the last financial year and that the annual accounts are being filed within one month of their approval with the Luxembourg Register of Commerce and Companies.
The Extended Covid Emergency Law came into force on December 17, 2020 and is effective until December 31, 2022.
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