The plaintiff in a recent Court of Appeal case concerning the enforcement of a pledge on shares given to a bank as part of a financing believed that the court's original decision was unclear. It consequently asked the court to clarify whether the decision ordering the return of the shares entailed that the plaintiff should be considered a shareholder from the date on which the bank had unlawfully acquired the shares or effectively returned them to the plaintiff.
The Court of Appeal recently ruled on the prorogation of general shareholders' meetings. Although this decision confirms the existing case law on prorogation, it is notable as it is the first time that a court has ruled that a prorogation request can be made before, and not only during, a shareholders' meeting. Ultimately, the decision strengthens the rights of minority shareholders.
The EU European Account Preservation Orders (EAPO) Regulation states that attachment orders must be enforced through the courts in accordance with the procedures applicable to the enforcement of equivalent national orders in the member state of enforcement. As Luxembourg's existing legislation proved to be poorly adapted to the execution of EAPOs, it recently implemented the EAPO Conversion Law in order to introduce a specific court enforcement procedure applicable only to EAPOs.
The Court of Appeal recently ruled on the loss of credit capacity in the context of bankruptcy. This was the first time that the availability of company funds in a third-party account was seen as a sufficient reason to avoid the loss of credit capacity. Thus, the court has finally clarified the notion of the loss of credit capacity referred to in Article 437 of the Code of Commerce in a way that is restrictive and favourable for debtors.
The Court of Appeal recently ruled that shareholders have a right to seek an annulment of decisions made by their company's board of directors. This decision sets a precedent for challenging board decisions on the grounds of the Companies Law, thereby increasing legal certainty by filling the gaps left by the law. However, it also marginally limits the scope of such challenges by excluding former shareholders from initiating new proceedings.