New Financial Assistance Rules after Implementation of Directive 2006/68/EC in Italy

Effective September 30, 2008, Italian legislation implementing EU Directive 2006/68, which in turn amended the Second Company Law Directive, laid down a new framework for Italian companies to grant financial assistance in transactions involving the acquisition of their own shares. This memorandum highlights the main features and prospective implications of the new regime, as compared to that which was in force in Italy following the implementation of the Second Company Law Directive. In essence, granting financial assistance, which thus far was prohibited in most cases, will be permitted subject to compliance with certain procedural requirements and quantitative limits.