The Right of Appeal in Limited Liability Companies: Commentary on Ordinance No. 16047 of 2024

The recent intervention of the Court of Cassation with Ordinance No. 16047 of June 10, 2024, has led to an important clarification regarding the rights of shareholders of limited liability companies (S.r.l.) who have pledged their shares. In particular, the ruling emphasizes that, despite the pledge, the shareholder retains the right to challenge the resolutions of the assembly. This aspect proves crucial to ensure the protection of shareholders' interests, even in situations of economic difficulty.

Regulatory and Jurisprudential Context

The ordinance refers to codified provisions, specifically Articles 2471-bis and 2352 of the Civil Code. According to the combined provisions of these norms, the shareholder whose share has been pledged loses only the voting right in the assembly. However, they retain all other administrative rights, including the ability to challenge resolutions that are contrary to the law or the articles of association.

S.r.l. - Pledged share - Voting right in the assembly - To the pledge creditor - Retention by the shareholder of the right to challenge the assembly resolution. A shareholder of a limited liability company who has pledged their share retains the right to challenge the assembly resolution in which the pledge creditor has voted on their behalf, as it emerges from the combined provisions of Articles 2471-bis and 2352 of the Civil Code that the shareholder, whose share has been the subject of a pledge, loses only the voting right in the assembly, but retains, in the absence of different agreements, all other administrative rights associated with the relevant quality, including the right to challenge resolutions contrary to the law or the articles of association.

Implications for S.r.l. Shareholders

The ruling provides significant protection to shareholders of S.r.l. in financial difficulty. In fact, even if their share has been pledged, the shareholder does not completely lose control over their rights. This implies that, in the case of assembly resolutions deemed illegitimate, the shareholder can still assert their rights in court.

  • The right of appeal is essential to ensure the correctness of assembly decisions.
  • The retention of administrative rights allows for greater protection for shareholders.
  • The regulatory provisions offer a framework of legal protection even in crisis situations.

Conclusions

Ordinance No. 16047 of 2024 represents an important step forward in the protection of the rights of S.r.l. shareholders in difficulty. The clarity regarding the preservation of the right of appeal, despite the loss of the voting right, underscores the importance of a balanced approach in regulating companies. This jurisprudential intervention not only reassures shareholders but also highlights the importance of responsible governance that is attentive to the needs of all shareholders, regardless of their financial situation.

Bianucci Law Firm