August 11, 2022


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Tribune De Lyon 2021 Lawful Guidebook: “Merger By Acquisition Transactions: What Is The Impact Of The Latest Final decision On The Transfer Of Criminal Liability?” – Corporate/Commercial Regulation


France: &#13
Tribune De Lyon 2021 Authorized Guide: “Merger By Acquisition Transactions: What Is The Effects Of The The latest Selection On The Transfer Of Criminal Liability?”&#13


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The 2021 Legal Information released by Tribune de&#13
 offers precise and pragmatic solutions to&#13
concrete troubles confronted by company homeowners/professionals.

 contributed to this Manual via an&#13
report entitled “Merger by acquisition transactions: What&#13
is the impact of the recent choice on the transfer of legal&#13
legal responsibility?”

This post is reproduced underneath and a courtesy English&#13
translation follows.


“Merger by acquisition” transactions: What is the&#13
influence of the the latest conclusion on the transfer of legal&#13

Catherine Nommick, Lover, Soulier Avocats

Considering the fact that a decision issued on November 25, 2020 by the Felony&#13
Chamber of the Cour de Cassation (French Supreme&#13
Courtroom), in a “merger by acquisition” transaction (i.e.,&#13
when a organization is merged into yet another), the obtaining firm might&#13
now be held criminally liable for an offence fully commited by the&#13
obtained company prior to the merger.

This selection undermines the basic principle of the particular mother nature of&#13
offences and penalties set out in Write-up 121-1 of the French&#13
Prison Code, on the basis of which the Cour de&#13
, which until finally then experienced equated the disappearance of a&#13
lawful entity with the death of a organic person, refused that the&#13
acquiring entity be held criminally liable.

Relying on a determination handed down on Oct 24, 2019 by the&#13
European Court docket of Human Legal rights, the French choose drew the&#13
penalties of the economic continuity that exists in between the&#13
obtained corporation and the getting organization to hold that they had been&#13
not to be thought of as distinct from just about every other.

A sizeable reversal of scenario-legislation, but yet limited in&#13
its effects. It does not apply to mergers accomplished before November&#13
25, 2020, in get not to infringe the basic principle of predictability&#13
of penalties, unless it can be demonstrated that the transaction in&#13
concern, even if carried out prior to that day, was intended to&#13
have the buying company escape felony legal responsibility. Eventually,&#13
Finally, the determination only applies to mergers that entail the&#13
acquisition of public minimal businesses (sociétés&#13
) or comparable entities (which tumble within just the scope of&#13
Directive 78/855/EEC).


1 An extended variation of this article is readily available on our&#13
Web site: Transfer of prison liability in merger&#13
transactions: A significant reversal of case legislation

To go through in French, you should click&#13

The content material of this report is supposed to offer a&#13
normal information to the topic make any difference. Expert guidance should really be&#13
sought about your particular conditions.

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