Transfer of shares in a limited company: obligation to notify members
In ruling no. 12-29.221 of 21 January 2014, the commercial chamber at the Court of Cassation reiterated that the invalidity of transfer of company shares in an SARL should be declared in the event of default of notice of the planned sale to members.
Indeed, pursuant to article L. 223-14 of the Commercial Code, "company shares can only be transferred to third parties outside of the company with the consent of the majority of members representing at least one half of company shares. In the present case, it was not observed that the planned transfer of shares had been notified to the company and founding member.