Debt/Equity ratio definition

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Case C– 163/20 P Commission v Valencia Club de Fútbol and Spain

Case C– 163/20 P Commission v Valencia Club de Fútbol and Spain CASE HUB See further: timeline and relevant/related cases. Case facts Outline Appeal against the General Court’s judgment in Case T- 732/16 upholding an appeal of the Commission’s decision of 4 July 2016 finding aid to certain three Valencia football clubs amounted to unlawful State aid (SA.36387). Latest developments On 7 April 2022, Advocate General Pitruzzeal delivered his opinion in which he recommended that the Court of Justice should dismiss the appeal in its entirety because it cannot be considered, as the Commission claims, that the General Court erred in law and imposed an excessive burden of proof on it by concluding that the Commission was wrong to rule out the existence of a market price for a similar unsecured loan because of the limited number of similar transactions on the market, insofar as this finding was not substantiated to the requisite legal standard. This error by the Commission is also sufficient to justify the conclusion of the General Court that the Commission disregarded that Notice on the application of Articles 107 and 108 to state aid in the form of guarantees. Indeed, an analysis in accordance with that communication would have required the due diligence of the possible existence of a market price for a

Cases T- 732/16 Valencia Club de Fútbol v Commission and T- 901/16 Elche Club de Fútbol v Commission [Archived]

Cases T- 732/16 Valencia Club de Fútbol v Commission and T- 901/16 Elche Club de Fútbol v Commission [Archived] CASE HUB NOTE—appeals lodged before the Court of Justice in Cases C- 211/20 P and C- 315/18 ARCHIVED—this archived case hub reflects the position at the date of the judgment of 12 March 2020; it is no longer maintained. See further: timeline and

Corporate joint ventures—glossary of terms

Corporate joint ventures—glossary of terms A Alternate director An individual (whether another director or any other person) appointed by a director to exercise that director’s powers and carry out that director’s responsibilities in relation to the taking of decisions by the directors, in the absence of the alternate's appointor. Unlike the Table A articles, the Model Articles for private companies limited by shares do not contain provisions about the appointment or removal of alternate directors. A company that has adopted bespoke articles of association may include provisions for the appointment, removal, rights and responsibilities of alternates (for example see article 4 of Precedents: Articles of association—joint venture company—deadlock (50:50) and Articles of association—joint venture company—majority/minority). Articles of association Generally referred to simply as the Articles. It is the principal constitutional document of a company, dealing with management and administration issues, most notably the powers of directors, the transfer and issue of shares and board and member meetings. The Articles form the fundamental contract between the company and the shareholders and must be available for public inspection at Companies House. The founders (or initial subscribers) and subsequent shareholders of a company have significant freedom when drafting the Articles, subject to the provisions of the Companies Act 2006 (

An introduction to business finance and accounting—for in-house lawyers

An introduction to business finance and accounting—for in-house lawyers This Practice Note aims to give you insight into finance and accounting in your organisation. It is intended to help you understand more about the basis of your department’s budgets and the issues involved in important financial transactions such as investment or acquisition decisions, where you may be involved from a legal perspective. Produced in partnership with Cranfield School of Management. The language of finance Management decisions and conversations are peppered with financial language—‘cash flow’, ‘margin’, ‘return’ and so on. Failure to fully grasp this language can put you at a disadvantage and may prevent you from being able fully to participate in important management decisions. Understanding all the complexities of financial matters is not a key requirement, but knowing a sufficient amount is. See Practice Note: Financial glossary for some key financial terms for in-house lawyers. There are two distinguishable forms of accounting in common use: • financial accounting is concerned with the day-to-day recording of financial transactions and high-level summarising of those transactions to satisfy the information needs of external user groups, eg investors, lenders, suppliers, anyone who has an interest in the financial performance and health of the organisation. Financial accounts are essentially a record of past, historic performance and are prepared primarily for the information of various external parties • management accounting is not subject

Renewable energy—Pakistan—Q&A guide

Renewable energy—Pakistan—Q&A guide This Practice Note contains a jurisdiction-specific Q&A guide to renewable energy in Pakistan published as part of the Lexology Getting the Deal Through series by Law Business Research (published: January 2022). Authors: Raja Mohammed Akram & Co—Aneesa Agha; Mariam Noor; Momina Naveed; Nehan Zehra; Abdul Wahab Niaz 1. Who are the principal government participants in the electricity sector? What roles do they perform in relation to renewable energy? The principal participants in the electricity sector are primarily federal government entities. Article 142 of the Constitution of Pakistan, 1973, empowers the federal government to make laws with respect to any matter in the federal legislative list which includes electricity. Under the Rules of Business, 1973, the Power Division, which is part of the federal Ministry of Energy, is empowered to deal with matters relating to the development of power resources and electric utilities and for prescribing national electricity policies. The Private Power and Infrastructure Board (PPIB) and the Alternative Energy Development Board (AEDB) are under the administrative control of the Power Division. The PPIB acts as a one-stop organisation on behalf of the government of Pakistan (GoP) to promote investments in the power sector. The primary functions of the PPIB under the Private Power and Infrastructure Act, 2012, include recommending and facilitating the development of power policies and coordinating with the provincial governments, local governments, the government

Structuring a project finance

Structuring a project finance Introduction to project finance structures This Practice Note considers what is meant by ‘structure’ in the context of a project finance transaction and identifies key issues that inform the approach to structuring a project finance transaction. This Practice Note looks closely at the Azura Edo independent power project in Nigeria (Azura Edo IPP) as a case study to help identify and explain a number of recent and innovative project finance structuring solutions which have been successfully implemented in order to overcome certain identified risks and challenges. This Practice Note is not intended to be a general introduction to project finance and does therefore assume a basic familiarity with its concepts (see Practice Note: Introduction to project finance). The focus of this Practice Note is on construction financings—that is, new projects being developed from scratch (also known as ‘greenfield projects’), rather than the sale or purchase of existing operating assets (often referred to as secondary market transactions) which are responsible for a substantial portion of market activity. The content of this Practice Note generally applies to the asset class commonly referred to as ‘energy and infrastructure’ projects, covering projects as diverse as power plants, oil refineries, toll roads and tunnels. This Practice Note does not cover those structures peculiar to the US project finance market, such as tax equity-driven structures for renewable energy

Share capital—glossary of terms

Share capital—glossary of terms A AIM A securities market owned and operated by the London Stock Exchange plc, with lighter entry requirements and continuing obligations than the main regulated markets. Formerly the Alternative Investment Market, now simply known as AIM. AIM company A company with a class of its shares traded on AIM. Acquisition accounting An accounting methodology where a buyer incorporates acquired assets and liabilities in its balance sheet at the date of acquisition, with any difference between the price paid and the fair value of the net assets acquired being purchased goodwill. Allotment Shares in a company are taken to be allotted when a person acquires the unconditional right to be included in the company’s register of members in respect of the shares (Companies Act 2006, s 558). Allotment is followed by the issue of the shares. Allotment authority The relevant authority under CA 2006, ss 549–551 giving the directors authority to allot shares in the company, or to grant rights to subscribe for, or to convert any security into, shares in the company. In a private company with only one class of shares the directors may allot shares unless prohibited from doing so by the articles of association. For all other companies such authority must be derived from express power in the articles of

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Evaluating India’s Insolvency and Bankruptcy Code

Restructuring & Insolvency analysis: The Indian Insolvency and Bankruptcy Code (IBC) was enacted to fix an ailing system. Prior to the introduction of the law, it took years for a company to wind up, which often resulted in protracted litigation. Five years since, experts continue to question whether the IBC has lived up to its intent. Written by Suranjali Tandon, assistant professor at the National Institute of Public Finance and Policy, India.

Interest deductibility—the future post-BEPS and the UK consultation

Tax analysis: Some commentators have made claims that the OECD/G20 project on Base Erosion and Profit Shifting (BEPS) could result in the biggest changes to international taxation in a generation. One of the key aspects BEPS seeks to address is interest deductibility (Action 4). In the light of HMRC’s consultation on how to implement Action 4 in the UK, the Tolley®Guidance team provide a brief overview of the current regime for UK corporation tax purposes, followed by an outline of the BEPS proposals, a summary of the government's consultation and, finally, highlight the possible implications a restriction on interest deductions.