Transfer of registered office outside the European Union: no automatic dissolution of the French company

A French company that transfers its registered office to the United Kingdom after Brexit does not automatically lose its legal personality or automatically transfer its assets to the newly created foreign company. The Court of Cassation confirms that, in the absence of a legal framework or a bilateral agreement for cross-border transfers of registered offices, …

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De Facto Companies and International Jurisdiction: The French Supreme Court Confirms the Jurisdiction of French Courts

Jurisdiction over the dissolution of companies, even when the company is a de facto company without legal personality, falls exclusively within the courts of the Member State where the company has its registered office, as determined under private international law rules.Under French law, in the absence of a statutory seat, one must identify the “real …

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Dismissing a director in a french SAS: statutory rules and extra-statutory personal commitments of the partners

Cass. com., 9 July 2025, No. 24-10.428 and No. 23-21.160 The Court of Cassation has clarified in two rulings the limits and links between statutory provisions and extra-statutory commitments regarding the dismissal of directors in french SAS companies. In SAS companies, the articles of association cannot be circumvented – but the partners may enter into …

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Judicial determination of the sale price of a business: a clear reminder of the limits of the judge’s power

Cass. com., 4 June 2025, no. 24-11.580 In this ruling, the Court of Cassation clearly emphasises that the judge cannot substitute his assessment for that of the parties when determining the sale price. This decision reaffirms the formal prohibition on judges setting prices and delimits their powers. Pharmacie Girardeaux had entered into a promise to …

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Expertise in the valuation of shares : the appointed expert’s freedom in the valuation of shares

Court of Cassation, Commercial Chamber, judgment of 7 May 2025, appeal no. 23-24.041 In this ruling of 7 May 2025, the Commercial Chamber of the Court of Cassation clarified the limits of the control that a judge may exercise over the mission of an expert appointed pursuant to Article 1843-4 of the Civil Code for …

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Shareholders action: shareholders have an individual interest even in the event of simultaneous action by the company

Court of Cassation, Commercial Chamber, 7 May 2025, appeal no. 23-15.931 “The shareholders have an individual right to seek compensation for the damage suffered by the company, which is not affected by the company's concurrent action.” The facts In a ruling handed down on 7 May 2025, the Commercial, Financial and Economic Chamber of the …

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A creditor cannot request the appointment of a provisional administrator for its debtor

Cass. com., 7 May 2025, No. 23-20.471 According to the Court of Cassation, a creditor of a company does not have the right to request the appointment of a provisional administrator for that company. The facts Two foreign companies, The Family Fellowship LLP and The Family Global Godfathers SPC, claimed to be creditors of the …

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Debt and cash management agreement: no automatic transfer of debt between affiliated companies

Cass. com., 12 March 2025, No. 23-23.961 In a ruling dated 12 March 2025, the commercial chamber of the Court of Cassation reiterated that the implementation of a centralised cash pooling agreement, even between companies in the same group, does not in itself allow the transfer of debt from one company to another, unless expressly …

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Wife’s and husband’s rights and company: the tacit renunciation of the status of partner must be unequivocal

Cass. com., 12 March 2025, no. 23-22.372 In a ruling handed down on 12 March 2025, the commercial chamber of the Court of Cassation confirmed that, under the statutory community of property regime, the husband of a spouse who has made a contribution to a company with joint assets can claim the status of partner …

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