Search results for

On October 1 2001, the Australian parliament enacted in-substance rules for distinguishing between debt and equity instruments for tax purposes as well as a revised, wide sweeping thin capitalization regime. These measures represent key aspects of a broader, but still incomplete, business tax reform programme.

Employee share trusts (EST) of listed companies established with the purchase of shares, unlike employee share option schemes (ESOP), were not subject to shareholder or Colombo Stock Exchange (CSE) approval until May 2001. The rationale for this was that an ESOP would require an increase in the issued capital of the company, whereas an EST, established by the purchase of shares, does not dilute an existing shareholder's holding. If, however, the company was issuing new shares for the purpose of establishing an EST, then the approval of shareholders and the CSE was required. Under the Companies Act (1982), paragraph (b) of the proviso to §55, a company is expressly empowered to give financial assistance towards the purchase of shares to be held by or for the benefit of employees of the company.

Gönenç Gürkaynak of White & Case, New York, assesses the nascent competition regime in Turkey and argues that it places too heavy a burden of proof on those accused of anti-competitive behaviour

virt-x, a trading platform launched on June 25 2001, offers trading facilities in the blue chip equities of the FTSE Eurotop 3000, MSCI Europe, S&P 350 and STOXX Europe. While virt-x is a recognized investment exchange under the UK Financial Services Act 1986 and supervised by the Financial Services Authority, the issuers of shares admitted to trading on virt-x remain listed in their chosen jurisdiction (ie Switzerland).

The financial crisis that hit Turkey recently has demonstrated how the country must strengthen its banking system in order to have a robust economy. As part of its efforts to create a sound and stable banking system and to achieve international banking standards, Turkey has been undergoing a fundamental restructuring. After the introduction of the amendments to the Banks Act No 4389 in May 2001, the necessary complementary regulations were also passed. On June 27 2001, the Regulation on the Mergers and Acquisitions of Banks and the Regulation on the Establishment and Activities of Banks were approved, and on June 30 2001, the Provisioning Regulation was introduced. Although the effects of the financial crisis can still be seen, these regulations have demonstrated to foreign investors interested in entering the Turkish banking sector that Turkey is taking the necessary steps for rapid progress.

On December 13 2001 the Finnish government submitted a bill to parliament concerning a number of amendments to be made to the Interest Act. The amendments would, in particular, change the provisions governing penalty interest on overdue payments.

Law Decree No 351 of September 25 2001, as converted with amendments into Law No 419 of November 23, on the privatization of real estate assets owned by the state and by other public entities, including local authorities and regions, contains a major change in Article 2 relating to the securitization of proceeds arising from the divestment of assets.

The US securities regulator must consider revising key parts of the year-old fair disclosure regime, according to one of its own most senior figures. A report on the impact of Regulation Fair Disclosure by Laura Unger, a commissioner at the Securities and Exchange Commission (SEC), is calling for further clarity on the controversial rule.

Lawyers in Singapore have revealed that Clifford Chance and Wong Partnership are to revive their joint venture, which collapsed in 2000.

Deutsche Bank's Moscow head has cast doubt on legal and administrative moves to reform Russia's ailing banking system. Speaking at a conference on the Russian banking sector in London early last month, Hubert Panzda, the chief executive of the bank in Russia, questioned whether plans to make Russian banks more competitive and transparent could be carried out in an increasingly uncertain economic climate.