Search results for

In response to the 2007 eurozone and US debt crises, the Basel Committee on Banking Supervision in 2010 introduced Basel III with a view to regularising standards on bank capital adequacy and market liquidity risk. The unprecedented speed with which Basel III was introduced was an attempt to stem the growing dissatisfaction with how banks were regulating themselves and to regain market confidence. While the aims of Basel III can be lauded, criticism on its viability in regions not affected by the European and US debt crises brings to the fore questions as to whether such standards would have counter-productive results.

International banks face regulatory uncertainty when underwriting India block trades

Muharrem Küçük Mustafa Yigit Örnek When international banks and financial institutions finance a project or provide acquisition financing, they need to acknowledge certain restrictions under the Turkish Commercial Code No 6102 (TCC) in respect of security granted to secure such financing. For any project or acquisition financing, the borrower itself is able to provide a corporate guarantee to the lenders. But there is a concern if a subsidiary company is required to provide a corporate guarantee in respect of the obligations of its parent company. According to article 202 of the TCC, a parent company cannot cause any loss to its subsidiary. Although abuse of control by the parent company does not render the relevant transaction void, the parent company is obliged to compensate the losses of the subsidiary within the same financial year or provide a method for compensation within the same financial year. If the parent company fails to compensate, the other shareholders or creditors of the subsidiary are entitled to commence proceedings against the parent company and the directors of the parent company for compensation of losses. Article 202 also applies if either the parent or the subsidiary is incorporated in Turkey.

Philippos Aristotelous In accordance with its commitment to its international lenders, Cyprus has made a number of changes to tax rates. With effect from January 1 2013 the corporate income tax rate has been increased from 10% to 12.5%. The rate of special defence contribution (SDC) on interest has also been increased, from 15% to 30%. The increase will take effect from the date of publication of the law in the official gazette, probably during May 2013. SDC tax is payable only by tax residents of Cyprus; non-resident individuals and companies are completely exempt, and interest on corporate financing or loan arrangements is subject to income tax rather than SDC tax.

Sandro Núñez Stock options are a kind of option right granted to employees. They allow those employees, within a specified term, to acquire equity in the employing company at a price agreed on the date of the call option. Stock options are created with the purpose of securing an employee's long-term commitment to the company, either as a part of a compensation plan, as a standalone agreement with a key employee, or as part of an M&A transaction where the selling parties intend to stay as part of the company's management.

In 2008, the government of the Macau Special Administrative Region (MSAR) started the revision of the Land Law (Law 6/80/M) after concluding: "Given the demands of various sectors of society … it appears that the Land Law, in force for more than 30 years, is no longer able to respond effectively to the current development of MSAR" ('Explanatory Memorandum of the Draft Law'). The draft was approved in general terms by the Legislative Assembly of Macau on February 5 2013.

On April 11 2013, the Philippine Bureau of Internal Revenue issued Revenue Regulations No 6-2013 (RR 6-2013) amending certain provisions of Revenue Regulations No 6-2008, which provides for, among other things, the rules involving the determination of the fair market value of shares of stock not listed and traded in the local stock exchanges. These regulations implement the provisions of the Philippine National Internal Revenue Code (the Tax Code) relating to the imposition of capital gains tax on the sale or transfer of shares that are not traded through a local stock exchange. The general rule under the Tax Code is that gains realised from the sale or disposition of shares of stock is subject to a capital gains tax of 10% (other than a sale of shares through a stock exchange, which is generally subject to a stock transfer tax of 0.5%). For the purposes of calculating the tax, the gain is the amount by which the selling price or fair market value of the shares (whichever is higher) exceeds the seller's acquisition cost. Under the previous set of rules, the fair market value of the shares was deemed equal to their book value, as shown in the financial statements duly certified by an independent certified public accountant nearest to the date of sale. In case the fair market value of the shares of stock sold or transferred was greater than the amount of money and/or fair market value of the property received, the excess received as consideration will be deemed a gift subject to the donor's tax under section 100 of the Tax Code (at a rate of up to 30% of the net gifts).

Clive Cunningham, Pat Horton and Nish Dissanayake of Herbert Smith Freehills explore the impact of the AIFM Directive on marketing alternative investment funds

Bumkyu Sung and Ik Hwan Cho of Kim & Chang explain the impact and future of South Korea’s law separating banks and securities firms

The Securities and Exchange Board of India (Sebi) is considering easing restrictions on put and call options, which may lessen M&A uncertainty