Assets Destined To A Specific Business

The recent so-called Reform of the Italian Corporate Law (i.e., Legislative Decree no. 6 of January 17, 2003), introduced a new way to provide a corporation with the benefit of a further limited liability in addition to the general one derived from the corporation’s status.

More specifically, the Reform added a new subparagraph (sections 2447-bis through 2447-decies) in the newly amended Title V of Book V of the Italian Civil Code, designating the so-called "asset destined to a specific business."

Two aspects of this legal institution are expressly regulated:

1) Section 2447-bis, 1^st paragraph, letter a) states that a corporation may exclusively link part of its assets to the realization of a specific business, subject to certain conditions specified in sections 2447-ter through 2447-novies;