According to Article R

This decision provides important insight into your property law. Here is how it affects you.

The situation

According to Article R. 223-32 of the French Commercial Code, when a derivative action is brought by a shareholder, the court may only rule if the company has been duly joined through its legal representatives. The court may appoint an ad hoc representative to represent the company in the proceedings where there is a conflict of interest between the company and its legal representatives. It follows that a derivative action brought by a shareholder is admissible only if the company is properly represented in the proceedings. Where there is a conflict of interest between the company and its legal representative, the company can only be properly represented by an ad hoc representative, which the judge must appoint at the request of the shareholder or legal representative or, as the case may be, on his own motion.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Strictly comply with the statutory time limits for bringing an action
• Keep all your supporting documents (title deeds, deeds, correspondence)
• Be proactive: preventive advice always costs less than litigation

For an analysis of your situation: 30 min consultation at €45 with Maître Zakine.