It is well known that the Soci\u00e9t\u00e9 Anonyme has always been (and remains by law) a capital company. In our country, however, it continues to have, in general, strong personal attributes.<\/p>\n
Founding (and non) shareholders always have a lot of concerns. One such is the possibility that one of the other shareholders (with whom they shared the \u201ccommon dream\u201d) would transfer its shares to a third party irrelevant to the original group. Possibly malignant and \/ or competitor. Where data permitted, we proceeded with statutory provisions based (primarily) on the needs of the main shareholder or, better, of the shareholder who had chosen us as his lawyers.<\/p>\n
These provisions were aimed at protecting the remaining shareholders from the potential surprise of the emergence of a new \u201cpartner\u201d. An associate with whom the old shareholders owed (regardless of their personality and intentions) to coexist and co-create.<\/p>\n
These provisions usually referred to the recognition of the preference rights of the remaining shareholders when a shareholder externalized his intention to transfer his shares. Even more so: when the shareholder had already pre – arranged, with a proposed acquirer, the transfer of his shares. Sometimes even the architectonic proceedings that were chosen were intended to make a potential transfer of shares de facto impossible. Especially in the event that a specific shareholder would not approve it.<\/p>\n
<\/p>\n
The possibility of denying the requested authorization and the \u201cred line\u201d to the restrictions that can be set. <\/strong><\/p>\n The law on soci\u00e9t\u00e9s anonymes accepts, in the provision of Article 43, that the competent body of the company (Board of Directors or General Assembly) may refuse to approve the requested transfer. Hence, not arbitrarily but under a respective statutory provision (paragraph 1).<\/p>\n The same provision (paragraph 2) introduces a systematic (but indicative) list of some restrictions that are possible but also tolerable on the basis of the Articles of Association to be borne by the company’s shares. For these restrictions, however, there is a significant, twofold, \u201cred line\u201d as it is not acceptable: (a) to make the requested transfer impossible; (b) for a quarter to expire without the company responding to a request of this respect, from the shareholder.<\/p>\n In the event of a violation of the aforementioned \u201cred\u201d line, the company is obliged to buy the shares for which the request itself, in accordance with the procedure provided by the law. The relevant provision (Article 45) provides for the mediation of a court decision, the determination of the redemption price through this court decision, the possibility of the mediation of an expertise. Also, the threat of a company\u2019s dissolution in the event of non-compliance with what said (court decision) orders.<\/p>\n <\/p>\n Restrictions <\/strong>and <\/strong>bodies <\/strong>of <\/strong>approval <\/strong><\/p>\n The respective provision of the law on Soci\u00e9t\u00e9s Anonymes refers to some more common restrictions that may be set in the Articles of Association with regard to the transfer of shares. This reference is indicative, as there is no restriction other than the pre-mentioned \u201cred line\u201d.<\/p>\n The involvement of a company\u2019s statutory body has always been (and still remains) already) given and necessary when there is a statutory provision on the future transfer of shares (based on a predetermined procedure). The General Assembly or the Board of the Directors (most commonly the last) was chosen as the body that would give the necessary approvals. Thus, the shareholder who had the majority of the votes in the General Assembly or of the members of the Board of Directors was the regulator of the relevant issue. The absolute, more or less, archon!<\/p>\n Certainly, with the new law, things are not different. And this is reasonable.<\/p>\n <\/p>\n Potential restrictions<\/strong><\/p>\n The provision of art. 45 par. 2 provides for, indicatively, certain restrictions that may be imposed on a possible transfer of shares.<\/p>\n In this context, the obligation of the shareholder requesting the transfer to offer the shares to the other shareholders or to some of them (paragraph 2, case a -recognizing their right of preference) is accepted. It is also defined as tolerable, the mandatory transfer of said shares, ONLY, to the one who will be indicated by the company (paragraph 2, case b).<\/p>\n More interesting, at a legal and practical level, are the other two restrictions. The ones met in international terminology as Tag Along Right (par. 2, case 3), and Drag Along Right (par. 2, case d) as potential and tolerable constitutional provisions. Those which, we, with some originality and sometimes moving hand over hand, incorporated as statutory provisions or arrangements for an extraterrestrial shareholders\u2019 agreement.<\/p>\n In the first case (: Tag Along Right), the third-party potential share buyer is obliged to acquire a corresponding number of shares of other shareholders (and not only of the one with whom he initially \u201cagreed with\u201d).<\/p>\n In the second case (: Drag Along Right) the remaining shareholders undertake the obligation to co-transfer to the third-party corresponding number of shares with the transferor.<\/p>\n Experience has shown that these alternatives have often successfully tackled and resolved complex problems in respect with the relationship between shareholders.<\/p>\n <\/p>\n Statutory regulations<\/strong><\/p>\n The Company\u2019s Articles of Association may (or not) provide for the existence of restrictions, such as above, in respect of share transfers. In the affirmative, it must regulate \u201cthe procedure, the conditions and the time limit within which the company approves the transfer or indicates a buyer\u201d. In the event that such a period has elapsed, the requested transfer is free. Hence, if there is a transfer of shares in breach of the statutory provisions, the transfer is declared null and void.<\/p>\n <\/p>\n Abolition of transfer restrictions. <\/strong><\/p>\n Possible existing statutory restrictions on the transfer of shares do not apply unconditionally. Like, e.g. in the event of a shareholder\u2019s death. Also, in case of attachment of his property, bankruptcy or other collective proceedings of transfer of his property. In such cases, it is possible to be statutorily provided: (a) the designation of a purchaser within one month starting from the company being informed of the respective event – the price is determined by the court or, alternatively, (b) the preference right of the other shareholders.<\/p>\n The reasons for the abolition of the statutory restrictions as well as the statutory provisions for the respective management of such events are assessed as perfectly reasonable. The latter even ensure the company\u2019s continuity within what the founding (or the subsequent) shareholders had envisaged.<\/p>\n <\/p>\n Corresponding (potential) restrictions also on bonds <\/strong><\/p>\n Respective restrictions with those mentioned above may be made by the decision of the competent body when a convertible bond is issued.<\/p>\n \u00a0<\/strong><\/p>\n In conclusion <\/strong><\/p>\n The statutory restrictions regarding the transfer of the shares of a soci\u00e9t\u00e9 anonyme contribute effectively to the smooth operation of the company when one of the shareholders expresses the wish to transfer its shares.<\/p>\n The relevant statutory provisions should, however, be reasonable and not lead to dead ends (since they will be self-defeating). Additionally: not to create the background of extortionate behavior by any of the shareholders.<\/p>\n The new law provides us with the right tools.<\/p>\n It is up to us to use them appropriately, along with the past experiences.<\/p>\n \u03a5.\u0393. A brief version of this article has been published in MAKEDONIA Newspaper on Sunday, 20th of January 2019.<\/p>\n Is it an option of the law or a minimum guarantee of the (founding and other) shareholders and of the smooth operation and continuity of the soci\u00e9t\u00e9 anonyme? Past experience It is well known that the Soci\u00e9t\u00e9 Anonyme has always been (and remains by law) a capital company. In our country, however, it continues…<\/p>\n","protected":false},"author":3,"featured_media":36794,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[206],"tags":[529,459,645,458,240,646,451,292],"class_list":["post-36741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-legal-advisors","tag-new-law-on-societes-anonymes","tag-restricted-stocks","tag-societes-anonymes","tag-stavros-koumentakis","tag-stocks","tag---en"],"_links":{"self":[{"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/posts\/36741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/comments?post=36741"}],"version-history":[{"count":4,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/posts\/36741\/revisions"}],"predecessor-version":[{"id":36796,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/posts\/36741\/revisions\/36796"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/media\/36794"}],"wp:attachment":[{"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/media?parent=36741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/categories?post=36741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/koumentakislaw.gr\/en\/wp-json\/wp\/v2\/tags?post=36741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"stavros-koumentakis\"](\"http:\/\/koumentakislaw.gr\/wp-content\/uploads\/2016\/04\/Koumentakis-and-Associates-Stavros-Koumentakis-Home-572-600-150x150.jpg\")
<\/p>\nStavros Koumentakis<\/a>
\nSenior Partner<\/em><\/h4>\n![\"\"](\"http:\/\/koumentakislaw.gr\/wp-content\/uploads\/2019\/01\/Stavros-Koumentakis-Article-efhmerida-MAKEDONIA-desmeymenes-metoxes-300x169.jpg\")
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