Legislative Decree 50/2017: the medium and small-sized limited liability companies have now access to on-line public offers of capitals

Article 57, par. 1 of the Legislative Decree 50/2017 (so called “Decreto Correttivo”) extended to medium and small-sized companies, funded as limited liability companies, the access to the crowdfunding, a type of loan consisting in the on-line subscription of the share capital of the financed  company, through a public offer.

This is an important intervention on the issue if we consider, in particular, that Article 2468, par. 1, of the Italian Civil Code - a fundamental rule in Corporate Law - establishes that shareholders’ holdings in the share capital of limited liability companies cannot be subject to public offers.

Within the European context, Italy is a pioneer in the legislative regulation and development of equity crowdfunding.

The new regulation stemmed from a growing need to develop a more flexible economical system and, at the same time, eliminate the practical difficulties for the medium and small-sized companies to access the capital market.

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