According to Dutch corporate law every legal person is required to draw up financial statements. A legal person which is part of a group of companies can be exempted of this requirement. If the parent company includes the financial information in consolidated financial statements, the subsidiary company is not required to draw up separate financial statements.
It is necessary, however, that the parent company declares that they will be jointly and severally liable for the debts of the exempted legal person. This declaration is called a comfort letter and is in the Netherlands called a 403-declaration, after the provision in the Civil Code in which this rule is laid down.