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Criminal risk increases during company mergers

2021-03-05T17:10:34.765Z


A company can now incur fines incurred by the one it absorbs. It is a reversal of jurisprudence that business leaders would have preferred to avoid. On November 25, the Court of Cassation ruled that henceforth faults attributable to a company were transferable to the one absorbing it. At the origin of this decision, a fire case in 2002 in the warehouses of the company Intradis. A judicial investigation was opened for the involuntary destruction of property b


It is a reversal of jurisprudence that business leaders would have preferred to avoid.

On November 25, the Court of Cassation ruled that henceforth faults attributable to a company were transferable to the one absorbing it.

At the origin of this decision, a fire case in 2002 in the warehouses of the company Intradis.

A judicial investigation was opened for the involuntary destruction of property belonging to others.

Rarely, the Iron Mountain company, which had absorbed Intradis in 2017, fifteen years after the events, was cited before the criminal court by the civil parties.

The court, then the Court of Appeal and the Court of Cassation considered that Iron Mountain had become criminally responsible for the acts committed by Intradis in its capacity as the absorbing company.

Read also:

The Covid-19 revives the mergers and acquisitions market

Until then, in such a situation, a company was considered to be a natural person.

When she disappeared, because of her absorption by another, her sorrows were not

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Source: lefigaro

All business articles on 2021-03-05

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