The Macron Bill about to introduce a right to remove shareholders of distressed companies: a new threat for investors or new opportunities for creditors of French companies in need of turnaround?

In its 2014 insolvency reforms, the French Government contemplated allowing a French Commercial Court (Tribunal de commerce), faced with a company under judicial reorganisation (redressement judiciaire), to remove that company’s shareholders. In the end, the Government did not include such proposal in the 2014 legislation for fear that the French Constitutional Court (Conseil Constitutionnel) would rule that such a mechanism is unconstitutional due to the fact that it would be viewed as an unjustified attack on property rights. However, subject to necessary amendments, the proposal has now been put back on the agenda for 2015.

Read the full article originally published in INSOL International  for further details.