Financial assistance in
law refers to assistance given by a
company for the purchase of its own
shares or the shares of its
holding companies. In many jurisdictions such assistance is prohibited or restricted by law. For example all
EU member states are required to restrict financial assistance by public companies up to the limit of the company's distributable reserves, although some members go further, for example,
Belgium,
Bulgaria,
France, and
The Netherlands restrict financial assistance by all companies. Where such assistance is given in breach of applicable law it will render the relevant transaction
void and may constitute a
criminal offence.