This series provides more detailed insight into the reform of the Belgian Company Code, which is expected to be voted into law by the end of this year. This ambitious reform will affect many businesses and is intended to render Belgian company law more flexible and attractive to Belgian and foreign investors. The reform will simplify and reduce the number of corporate forms and will also apply to Belgian non-profit associations and foundations.
This newsletter provides more detailed information on conflicts of interest provided for by the new Code of Companies and Associations.
Currently, the Company Code provides that a director of an SA/NV or SPRL/BVBA who has a conflict of interest must inform the other directors thereof. A conflict of interest will be found when a director has a financial interest that conflicts with a decision to be taken by the board of directors or a transaction to be implemented by the board. This will be the case, for instance, when a director rents (a portion of) his or her house to the company. It is in the director's interest to ensure that the rent paid is as high as possible, while it is in the company's interest to pay as little rent as possible.
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