Contributions auditor

In a company, it is possible that the share capital is not made up of a cash contribution alone: that is, of a sum of money. It is also possible for the shareholders to provide tangible and/or intangible assets (real property, capital funds, machinery, equipment, goods, patents, trademarks, credits, etc.) that will also form part of the share capital. This situation can be seen both when an enterprise is formed and at the time of a share capital increase. In consideration of this contribution in kind, the shareholders receive shares or quotas in the enterprise. The role of a contributions auditor is to understand these contributions in kind in a neutral and objective manner, in particular in order to maintain equality among the shareholders.

After a contributions auditor has been appointed, he or she does the work required to be in a position to assess the valuation of the contributions made in kind. The contributions auditor's intervention is made in several stages:

• obtaining a general understanding: the contributions auditor works with senior management and the various responsible managers in order to be able to gain a better understanding of the context in which the proposed transaction will take place;
• checking on the contributions: the controls carried out by the contributions auditor relate to the reality and existence of the contributions and their value, considered both individually and globally. The contributions auditor also verifies that the person making the contribution is the real owner of the rights that enable them to make the planned contributions;
• preparing the report: the contributions auditor prepares a reasoned report that includes his or her conclusions, and in which, where applicable, mention is made of the opinions of any specialists he or she has consulted.

In the Principality of Monaco, Article 1 of Law 408 States that a contributions auditor must be selected from the public accountants registered with the Order. Instituted by Law dated 12 January 1945, it has the purpose of understanding the value of a contribution or the cause of the special benefits.

 This obligation to use a contributions auditor applies to all Monegasque companies in the context of a contribution in kind.

 Are you looking to form a company or to increase your company's share capital using contributions in kind? Consult the list of members of the Order to find your contributions auditor