In view of a clause in the articles of association

This decision provides important insight into your property law rights. Here is what it changes for you.

The situation

In view of a clause in the articles of association of a non-trading property investment company (société civile immobilière) according to which the directors must, in transactions binding the company, have creditors waive the right to bring a personal action against the shareholders, the judgment lacks legal basis which, in order to dismiss the action of a contractor seeking an order that each shareholder pay the balance of the works in proportion to his share, holds that the contractor, being one of the shareholders of that company, had committed a fault by entering into the contract which, in breach of the aforesaid clause, contained no waiver on his part, without examining whether the director with whom he had entered into the works contract had not committed a fault in light of the obligation incumbent on him under the said clause.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Scrupulously comply with legal time limits for appeals
• Keep all supporting documents (deeds, instruments, correspondence)
• Anticipate: preventive advice always costs less than litigation

For an analysis of your situation: a 30-minute consultation for €45 with Maître Zakine.