Commercial Law

The closure of many companies since the first lockdown in March 2020 and the resulting economic slowdown have caused high tensions between lessors and lessees of commercial premises. Some tensions escalated to disputes, some of which have already been brought before French courts.

Law No. 2020-1379 of November 14, 2020 authorizing the extension of the state of health emergency and introducing various measures to manage the health crisis (the “Law”) has supplemented the measures taken as early as in March 2020 by the French Government concerning the performance of commercial leases agreements.

Faced with the urgency of the situation and the risk of imminent damage caused by the sudden termination of an established business relationship, the terminated business partner may ask the summary judge to order the continuation of the relevant contract. This was recalled by the Cour de Cassation (French Supreme Court) in a decision dated June 24, 2020.

In a decision issued on September 18 2019, the Cour de Cassation (French Supreme Court) recalled that while disparagement which constitutes an act of unfair competition necessarily results in a business disruption, a claim for compensation must be dismissed wherever the existence of the alleged damage is not duly established.

After the agreements between the European Union and Canada and Japan, it is now the turn of the European Union – Singapore free trade agreement to enter into force. This agreement – the first free trade agreement between the European Union and a Member State of the Association of Southeast Asian Nations – marks a further step towards the European Union’s external trade openness.

The property ownership tax (taxe foncière) is a local tax levied once a year by municipalities. To calculate the amount of the tax, tax authorities use the cadastral rental value of the property. This base is then multiplied by the tax rate set by each municipality. Any owner of a real estate property is liable for the property ownership tax. However, while the owner is effectively legally liable for this tax, it is permissible, under a commercial lease agreement, for the latter to pass all or part of the burden of this tax to the lessee of the property. But what exactly does the law say?

On May 17, 2017, Directive 2017/828 of the European Parliament and of the Council amending Directive 2007/36/EC as regards the encouragement of long-term shareholder engagement in listed companies was adopted.
This revision of Directive 2007/36/EC aims to change practices brought about by the 2008 financial crisis, which, by promoting short-term yields, lead to sub-optimal corporate governance and performance.