The Law of Corporate Finance: General Principles and EU Law: Volume III: Funding, Exit, Takeovers

72 3 Reduction of External Funding Needs Group companies should agree on the distribution of costs and benefits between themselv ...

3.4 Management of Working Capital 73 loans); the causing of insolvency by transferring funds to a shareholder;^178 and the payme ...

74 3 Reduction of External Funding Needs In Germany, the MoMiG made it easier for group companies to grant collateral and use ca ...

3.4 Management of Working Capital 75 company (for financial assistance, see section 20.4).^193 (2) Second, EU company law also r ...

76 3 Reduction of External Funding Needs all participating companies; avoidance of unlimited joint and several liability for def ...

3.4 Management of Working Capital 77 Netting Netting is a further form of cash management (for the legal aspects of netting and ...

78 3 Reduction of External Funding Needs mation day, after which the netting center performs preliminary netting and trans- mits ...

3.4 Management of Working Capital 79 associated with participation in payment and securities settlement systems, and in particul ...

80 3 Reduction of External Funding Needs 2007.^218 The Member States must transpose the Directive into national law by 1 Novembe ...

3.5 Excursion: Basel II 81 The E-invoice Directive^221 addresses questions relating to VAT and various other questions. The E-in ...

82 3 Reduction of External Funding Needs The Standardised Approach is straightforward to use and does not require insti- tutions ...

4 Debt 4.1 Introduction All firms lend and borrow. For example, the firm is a lender if it has a bank ac- count in credit, and a ...

84 4 Debt are usually dictated by the bank. (b) Sometimes the firm can borrow from other non-financial firms. For example, the f ...

4.1 Introduction 85 makes a loan available to the borrower subject to certain conditions. The borrower might not have any obliga ...

86 4 Debt From a legal perspective, loan instruments can be “negotiable instruments” and regarded as “Wertpapiere”, or receivabl ...

4.2 Management of Risk: General Remarks 87 IFRS. Accounting for loan relationships is important not only for lenders but also fo ...

88 4 Debt Risks inherent in the statements of the parties (drafting risk). International loan agreements generally tend to be lo ...

4.2 Management of Risk: General Remarks 89 process more efficient and allow negotiations to begin from a more reasonable startin ...

90 4 Debt The borrower’s investment project might include an estimate of capital cost. However, the firm might incur large addit ...

4.2 Management of Risk: General Remarks 91 quirements) to be shouldered by the borrower (increased costs clause, see the fol- lo ...