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Legal Insights

28 December 2022

French Constitutional Council confirms that exclusion clauses included in the by-laws of French sociétés par actions simplifiées are compliant with the Constitution

Pursuant to the first paragraph of Article L. 227-16 of the French Commercial Code, “In accordance with the conditions which they so determine, the by-laws may specify that a shareholder may be required to sell the shares he/she/it holds in the company.”

The second paragraph of Article L. 227-19 of the French Commercial Code, in its version applicable since July 21, 2019, stipulates that the exclusion clauses referred to in Articles L.227-18 “can only be adopted or amended pursuant to a unanimous decision of the shareholders, in the manner and under the conditions provided for in the by-laws”.

In a recent decision issued on December 9, 2022, following four applications for a preliminary ruling on the issue of constitutionality, the Constitutional Council ruled on the conformity of these provisions with the French Constitution.

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27 December 2022

Compensatory allowance v. fundamental rights

In a ruling issued on November 30, 2022, the First Civil Chamber of the Cour de Cassation (French Supreme Court) ruled that the principle of compensatory allowance should prevail over property right, using however a careful argumentation.

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22 December 2022

Open sesame!

The cell phone appears in today’s society as a second home. Everything is there, including our most secret files. But is it possible to refuse to give the key to this home?

In other words, can you refuse to give the access code of your smartphone?

In a ruling issued on November 7, 2022, The Cour de Cassation (French Supreme Court) seems a priori to say that the answer is no.

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30 November 2022

A whiff of dystopia in the air

The end-of-year-holiday season is fast approaching and it will be proper to wish the best to our loved ones and to all those whose path we have crossed in 2022. It is time to look back at a traumatic year and to prepare ourselves to face the worst scenarios: war, recession, and their consequences.

The worst is never certain but it may happen again.

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29 November 2022

The specific compensation due to an employee in case of void dismissal can be reduced by the judge only if the employer expressly so requests

Wherever a dismissal is declared null and void because it is based on a prohibited or unlawful ground, the judge is required to examine the other grounds for dismissal, if any, that have been raised in order to determine the amount of the specific compensation to be awarded to the employee… But only if he/she is expressly asked to do so by the employer.

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28 November 2022

The general public’s access to information on beneficial owners of companies held invalid

In a judgment handed down on November 22, 2022, the Court of Justice of the European Union, sitting as the Grand Chamber, held that, in the light of the Charter of Fundamental Rights of the European Union, the provision of the so-called anti-money laundering Directive whereby Member States must ensure that the information on the beneficial owners of corporate and other legal entities incorporated within their territory is accessible in all cases to any member of the general public is invalid.

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