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Commercial Law — Company law — Number of shareholders

Date Citation Note
19.11.2002 Court of Cassation Commercial Chamber Application for Review No. 00-13662 Case Caisse du Crédit Mutuel du Nord v Ediscan French law makes provision for a minimum number of shareholders for most types of company. In particular, it provides that the company (except in the case of a “société à responsabilité limitée") may be dissolved at the request of any interested party if all the shares come to be held by one person (Article 1844-5 of the Civil Code). In this case, the assets and liabilities (“patrimoine”) of the company are transferred in their entirety to the single shareholder (but not, at present, if that single shareholder is an individual). This case is an interesting illustration of the rule, with an important analysis of the effect of the dissolution on sureties given for loans contracted by the company in question prior to its dissolution.