The Financial Services and Markets Authority has made available a set of frequently asked questions (FAQs) regarding contributions in kind, mergers, divisions and equivalent operations. It seeks by means of these FAQs to recall a number of fundamental principles that apply to these types of operations. The FSMA also draws attention, via the FAQs, to observed good practices.
In cases of contributions in kind, mergers, divisions and equivalent operations, conflicts of interest can arise on the part of the persons initiating the operation. This may occur, for instance, in a business combination involving two companies with the same reference shareholder.
The FSMA therefore wishes to recall a number of fundamental principles that apply to these types of operation and to address several practical questions and good practices. This way, it seeks to support the decision-making process within listed companies in respect of operations involving conflicts of interest and to enable all those concerned to perform their role to the full.
The FAQs are available on the website of the FSMA.