As a court-made doctrine enshrined in French law in 1985[1] and again in 2005[2], the commingling of assets and liabilities, i.e. a powerful weapon against the abuse of legal personality primarily committed within corporate groups which allows to extend safeguard, receivership or liquidation proceedings to one or several other person(s) when such person(s)’(s) assets and […]
The change in the method of allocation of profits between the shareholders provided for in the company’s by-laws does not constitute a gift insofar as (i) such change can only be made pursuant to a decision of a corporate body, and (ii) the profits earned by the company are considered as having the nature of […]
Article 1843-4 of the French Civil Code stipulates that “In all cases concerning the transfer of a shareholder’s shares or the buyback of such shares by the company, the value of the shares shall be determined, in case of a dispute, by an expert appointed either by the parties or, in the absence of an […]
Introduced by the Law n°92-683 of July 22, 1992 relating to the reform of the general provisions of the French Criminal Code, the criminal liability of legal entities is, under French law, a liability through imputation that requires actions/infringements by natural persons. Indeed, pursuant to Article 121-2 of the French Criminal Code: “legal entities, with […]
Despite its prominence, the issue of how to manage a potential dispute among shareholders or blocks of shareholders during the company’s life is rarely anticipated. Yet, such a situation, quite common nowadays, can have major implications and even entail, in case of paralysis of the business, the dissolution of the company. This is precisely what […]
“Financial dealings between France and foreign countries are unrestricted”: this is the principle enacted in Article L.151-1 of the French Monetary and Financial Code (“FMFC”).
Strategic Lawyering