Reconciling legal certainty in corporate divisions with respect for civil law remedies: Case C-394/18 I.G.I. Srl v. Maria Grazia Cicenia Articles
- June 2020
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- On 30 January 2020, the Court of Justice of the European Union (CJEU) delivered its judgment in the Case C 394/18 I.G.I. Srl v. Maria Grazia Cicenia et al. The case offers an interpretation of the Directive on corporate divisions in a case that fell outside its scope, and a delicate balancing act between the need to protect legal certainty in corporate divisions, and the need to respect Private Law remedies enshrined in domestic civil codes. The CJEU ruled that the rules of the Sixth Council Directive 82/891/EEC did not preclude the creditors of a company being divided from bringing an actio pauliana against the corporate division, in order to obtain a declaration that the division does not have effects against them, nor did it preclude them from bringing enforcement proceedings against the assets transferred to the newly formed company.
- actio pauliana; avoidance; company law; corporate divisions; creditor protection; fraud; nullity