Luther SA updates

Luxembourg District Court rules on conditions for enforcing pledges
Luther SA
  • Litigation
  • Luxembourg
  • May 29 2018

Following a recent Luxembourg District Court decision concerning the conditions for the enforcement of a pledge, collaterals consisting in a pledge on the shares of a company can be enforced even outside of a default payment (ie, even if the secured debt is not due and payable). In the case at hand, the pledge agreement provided that the pledge was enforceable in case of non-compliance with a binding financial ratio.

Luxembourg District Court rules on judicial management reports
Luther SA
  • Litigation
  • Luxembourg
  • May 08 2018

The Luxembourg District Court has clarified the requirements and procedures regarding judicial management reports provided for in the law on commercial companies, as amended. The ruling provides valuable insight into shareholders' right to request information on management decisions. While the reduced threshold suggests a trend in Luxembourg law towards shareholder empowerment, as well as the accountability and transparency of managing bodies, the ruling appears to be pro-management.

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