Luxembourg is an established financial hub. Fintech has pushed financial services regulation into uncharted territory and this country has not created a regulatory sandbox. Here’s why that’s good news for Fintechs.
Law of 20 June 2020: enhanced flexibility for shareholder and board resolutions of Luxembourg companies post state of emergency
As the state of emergency came to an end on 24 June in Luxembourg, the measures introduced in this specific context granting flexibility to companies also ceased to apply.
A set of legislative measures have now been introduced to ensure that companies may temporarily continue to benefit from a regime similar to the one applicable under the regulation of 20 March 2020, most recently with the law dated 20 June 2020 extending the measures regarding the meetings held by companies and other legal entities.
Following a ruling of the CJEU, termination fees in the event of early termination of a contract are often triggering VAT. Especially in B2C-situations, were the customer does not have a right to recover VAT, such VAT is likely to result in a significant VAT burden for businesses.
Like all businesses, law firms are facing the coronavirus crisis. Business continuity, in the clients’ interest, requires exemplary coordination and constant technological innovation, and therefore a successful digital transformation.