In this article, Anker Sorensen, a senior partner of the Financial Industry Group of Reed Smith in Paris, practicing predominantly in the area of Corporate and Restructuring, discusses two recent decisions rendered by the Commercial chamber of the French Supreme Court. One of the decisions seems to set a standard for the lower courts when ruling over undercapitalization issues. The second decision puts an end to a contrary line of case law and Anker raises the question whether the court would have reached a different solution if the claim had been brought against the shareholders, as in the first decision, rather than against the managing directors.
Read the full article originally published in the August issue of International Corporate Rescue (PDF) for further details on these two decisions and their impact on shareholders and managing directors of underperforming companies in France.