Corporate, Joint-stock Company, Shareholder Agreement, Participation Loan, Circulation of shares, Order no. 17500 of 04 – 27/07/2018, First Supreme Court of Cassation

Strengthening and increasing corporate value.

The agreement between shareholders of a joint-stock company is legitimate and worthy of protection, with which, on the occasion of the participative financing of one of them, the others are obliged to relieve the new member from any negative consequences of the contribution, by assigning the latter of the right to sell (so-called), within a specified term, and to the others of the obligation to purchase the shareholding at a pre-established price – equal to the initial price, with the addition of interest on the amount due and repayment of the payments made in favor of the company – placing the mechanism in terms of circulation of shares, rather than that of the distribution of profits and losses, whose merit is inherent in the strategic operation to strengthen and increase corporate value.

Source Supreme Court of Cassation