Expropriation by security – limited liability company
The law firm is analyzing the validity of an appeal in a case to determine the invalidity of a security transfer agreement, in which a limited liability company secured an individual’s loan debt in this way.
The court of first instance held that the company had transferred the property without the resolution of the shareholders’ meeting required by the Companies Act. Meanwhile, the company’s board of directors legitimized the relevant resolution.
The dispute is over the interpretation of its provisions and whether the transfer of collateral in general is a “disposal of real estate” as referred to in the article 228 para. 4 of the CCC.