Cash Pooling – a guide to cash pooling risks and solutions across Europe

05/03/2010

The CMS Cash Pooling guide is essential for any group company using or considering cash pooling in Europe.

Cash pooling enables corporate groups to ‘pool’ the cash of all their entities into one bank account. Each company regularly transfers their surplus cash to the single “master” bank account, and then draws funds to satisfy their own cash flow requirements. Such economies of scale help group companies to minimise bank charges and maximise interest payments.

Corporate groups can choose to physically or virtually transfer the funds. Either way, there are risks involved in setting up arrangements with banks and with setting up “cash pooling agreements” for each group company – specifically civil or criminal liabilities for the company and their officers.

If your group company is currently using or considering cash pooling, you will want a copy of the CMS Cash Pooling guide. It details the risks of civil and criminal liability associated with cash pooling in nine European countries: Austria, Belgium, France, Germany, Italy, the Netherlands, Spain, Switzerland and the United Kingdom. It also discusses ways to help corporate groups reduce their risks.

Publication
Cash Pooling
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PDF 1.3 MB

Authors

Picture of Cedric Guyot
Cedric Guyot
Partner
Brussels