160607 Functionning of a real estate partnership

Ca binet Bra hin
Cabinet Brahin
Société d'avocats au Barreau de Nice
1 rue Louis Gassin - 06300 Nice
Tel : +33 (0)4 93 83 08 76 – Fax : +33 (0)4 93 18 14
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ADVOKATFIRMA I FRANKRIG / LAWYERS OFFICE IN FRANCE
www.brahin-avocats.com
[email protected]
Nicolas Brahin
DESS Droit Bancaire et Financier
Université Paris I (Panthéon-Sorbonne)
Céline Zekri
DEA Droit Immobilier Public et Privé, ICH Paris
Université de Nice
By email :
Number of pages: 2
Avocats au Barreau de Nice
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Correspondant organique de :
Legipass
8, rue Auber - 75009 PARIS
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Finn Larsen Advokatfirma
Algade 43, 1 - 4000 Roskilde -Danemark
www.advokat-firma.dk
Nice, 9th of June 2016
Horizons China Corporate advisory
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Huangpu, SHANGAI PR China 200021
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FUNCTIONNING OF A LIMITED LIABILITY COMPANY
News for security accorded by a company as a guarantee debts of one of the associates
A security accorded by a limited liability company (“société civile”) as a guarantee debt for an
associate is effective only if the security doesn't compromise the company existence itself and it has to
be in accordance with the corporate interest and purpose.
The French Highest Court (“Cour de Cassation”) applies this rule in the following legal case 1:
in order to be able to give its real proprieties as a security of a bank loan subscribed by one of the
associates, all the associates of a limited liability company (Société Civile Immobilière), decided
unanimously to change the corporate object.
1 Cass. Com. 23 septembre 2014 n°13-17.347 (n°811 FS-PB) : RJDA 12/14 n°914
Cabinet BRAHIN Société d’Exercice Libérale à Responsabilité Limitée inscrite au Barreau de NICE
E-mail: [email protected]
www.Brahin-avocats.com
BUREAU PRINCIPAL inscrit au Barreau de NICE (CP 427)
1, RUE LOUIS GASSIN - 06300 NICE FRANCE
BUREAU SECONDAIRE inscrit au Barreau de MONTPELLIER
14, Rue Ernest Michel – 34000 MONTPELLIER
Two months following the statutory change, the SCI stood surety by accepting a mortgage
(“hypothèque”) on its real property as a security for the refund of the loan subscribed by an associate.
The disputed security was declared void by the court because the mortgaged property was the
only asset of the company.
The real estate partnership company (“SCI”) derived no benefits from its pledge.
Thus, the existence itself of the SCI was challenged.
Considering this ruling, the French Highest Court or “Cour de Cassation” creates derogation
from the legal rules governing the subject that the mandatary engages legally the company with
respect to third party concerning the acts in accordance with the company object (C. Civ. Art. 1848. al.
1)2.
Henceforth, such rule is no longer applied for company which expresses its intent to be
guarantor for the debt of one of its associates.
The only requirement is the accordance with the corporate interest.
Nicolas BRAHIN, Avocat
Master’s Degree in Banking and Financial Law
Université Panthéon-Sorbonne
Email : [email protected]
2 C. Civ. art. 1849. al. 1 « Dans les rapports avec les tiers, le gérant engage la société par les actes
entrant dans l'objet social »
2