Petitions to the Chamber of Deputies

OBJECT : D'Zil vun dëser Petitioun ass folgend: d'Regelen vun der finanzieller Käschterechung fir Zännkrounen an der nationaler Gesondheetsversécherung ze verbesseren, fir datt Leit mat genetesch bedéngten oder laangjäregen Zännproblemer eng méi gerecht an adequat finanziell Ënnerstëtzung kréien.

OBJECT : Demander la mise en place d'un plan d'urgence luxembourgeois afin d'améliorer rapidement les conditions de transport sur la ligne ferroviaire L90 (Metz-Thionville-Luxembourg), avec une augmentation des capacités ferroviaires, un engagement financier renforcé du Luxembourg dans le développement du sillon lorrain et une accélération des investissements à court terme.

OBJECT : I. Subject of the petition The petition asks the Chamber of Deputies to amend the law of 10 August 1915 on commercial companies (the "Company Law") in order to expressly recognise the possibility, for an existing shareholder, to contribute equity to a Luxembourg company without receiving new shares in return. This practice, common in Luxembourg, is currently provided for only by accounting law, and not by company law. The absence of a statutory framework creates legal uncertainty for companies, shareholders, and creditors. The petition further asks that the tax treatment of such contributions be clarified, either by way of an amendment to the law of 4 December 1967 on income tax, or through a circular issued by the tax authorities. II. Background and current legal situation Contributing equity to a company without receiving new shares in return is a common operation in Luxembourg, particularly within groups of companies. It allows the equity of a company to be increased quickly, without the costs of a traditional capital increase by notarial deed. Yet this operation is only governed by accounting law (under capital account 115 of the Luxembourg Standard Chart of Accounts). Neither the Company Law nor any other company-law text sets out its legal effects, the conditions under which it may be carried out, the rights and duties of the contributing shareholders, or its consequences in the event of insolvency, liquidation or transfer of shares of the company. This absence of a legal framework has already given rise to unfavourable court decisions. In 2022, the Higher Administrative Court ruled that such contributions are not taken into account for the purposes of the parent-subsidiary tax regime. The result is a mismatch between the accounting treatment (which considers them as equity) and the tax treatment (which disregards them), to the detriment of legal certainty and the attractiveness of Luxembourg.