The Network and Capital Allocation in the Italian Companies

Abstract

Pursuant to paragraph 4-ter, letter c), of the law no.122 of July 30, 2010, in the network contract the institute of common fund is now optional for the parties: where envisaged, transfer of capital may be realized by means of allocation of assets to any one specific business pursuant to art.2447–bis of the Civil Code. This way companies may have accounting and real separation of part of their assets intended to meet the network requirements, but nevertheless maintain the ownership of the aforementioned assets. However, as for the application of the above-mentioned regulations, difficulties arise with reference to the extensibility of the legal institute in question to Ltd.s: if several considerations lead to support its inadmissibility, nonetheless it is not unfounded the possibility of extending the use of assets allocation for the participation in a network contract at least to Ltd.s with abundance of assets comparable to that of the joint-stock companies.