Agefi Luxembourg - novembre 2024

Novembre 2024 41 AGEFI Luxembourg Droit / Emploi By Guillaume SCHAEFER, Counsel & Valentin GARCIA,Associate, DLAPiper Luxembourg “To govern is to foresee; and to foresee nothing is to run to one’s ruin.” (1) T his adage iswell understoodby various players in the business world, and it is particularly ap- propriatewhen it comes to share- holders’ agreements. Shareholders’ agreements arewidely used and essen- tial tools for organising and defining the terms of asso- ciation within a company. They afford shareholders genuine freedomandflexibil- ity, offering a wide range of applications. They notably de- termine shareholders’ financial and political rights, the conditions under which they can leave the company, and the gover- nance structure of the company. The globalisation of trade and the influence of major powers have profoundly altered the busi- ness landscape. It is now common practice for shareholders to make their agreement subject to a lawother than that whichwould otherwise be ap- plicable to the company. But the flexibility afforded to the parties under contract law ( lex contractus ) does not exempt them from complying with the requirements of the lawapplicable to the company ( lex societatis ). Distinction between lex societatis and lex contractus Distinguishing between the lex societatis and the lex contractus is a common issue, particularly in cases where the two bodies of rules are inextricably in- tertwinedwithin the same company. The initial difficulty arises from the fact that the scope of applicationof the lex societatis is not always readily determinable. (2) Nevertheless, it is widely acknowledged in Luxembourg and in the Euro- pean legal framework that the lex societatis pertains to the internal organisation of the company and its interactions with external parties. (3) In contrast, the lex contractus identifies the legislation that applies to a contract, with shareholders’ agreements falling into this second category. These two sets of rules are based on distinct ratio- nales and normative frameworks. The lex societatis derives from national legislative texts, such as the lawof 10August Company on commercial compa- nies, as amended (the Company Law) in Luxem- bourg. This legislation was designed, in part, to protect the company’s social interest and the public policyof the state that adopted the rules. Theparties are not allowed to derogate from, set aside or amend these rules by private agreement. Con- versely, the lex contractus affords the parties the au- tonomy to delineate their respective rights and obligations (including the scope of thematters that the contract is to govern), including choosing the applicable law to their contractual relationship. (4) Scope of the distinction The distinction between the lex societatis and the lex contractus is not only theoretical; it has practical im- plications, particularly the formal requirements for the validity of documents and their publicity and protection. To illustrate the above, the articles of association of a Luxembourg company, which are subject to the exclusive jurisdiction of the lex societatis , must be drafted in the form of a notarial deed to guarantee compliance with the mandatory provisions of the Company Law. (5) By their nature, shareholders’ agreements aremostly (if not exclusively) executed under a private seal. The requirements pertaining to the public dissem- ination of information and the dissemination of in- formation to third parties also exhibit considerable variation. It is a legal requirement that the articles of association of a Luxembourg company be regis- teredwith the Luxembourg Trade andCompanies Register, along with other pertinent legal informa- tion. In contrast, the content of shareholders’ agree- ments is typically regarded as confidential and accessible only to the signatories. The degree of legal protection varies in accordance with the nature of the legislation in question. In the event of non-compliancewith the regulatory frame- work governing the operation of Luxembourg companies, the con- sequences can be severe, includ- ing the nullification of decisions taken at general meetings or crim- inal prosecution, where applicable. In contrast, a breach of a sharehold- ers’ agreement is typically ad- dressed in accordance with the fundamental principles of contract law, resulting, in principle, in the award of damages. The provisions set forth in a Luxembourg com- pany’s articles of associ- ation can be enforced against third parties (unless there is a legal exception), whereas the stipulations of share- holders’ agreements can, in principle, only be in- voked by the signatories. Illustration of a conflict between lex societatis and lex contractus : Shareholders’ right to information There may be a temptation to mitigate the appli- cation of certain national rules that are deemed too restrictive by concluding an agreement that is gov- erned by foreign law. To illustrate, a shareholders’ agreement governed by Anglo-Saxon law may provemore advantageous to the interests of share- holders than Luxembourg law, which affords precedence to the corporate interests of the com- pany over those of individual shareholders. But beyond the clauses that are manifestly incom- patible with Luxembourg law, the question arises as to the effectiveness of an agreement that modu- lates the operation of a Luxembourg company and is subject to foreign law. The right to information for shareholders provides an illustrative case in point. This political right, which is granted to all shareholders of Luxembourg companies, is gov- erned by the lex societatis . The right to information is not absolute or unlimited in Luxembourg law and is strictly regulated. While it isgenerallyexercised in the context of agen- eralmeeting (either before (6) orduring theholdingof the meeting (7) ), shareholders can also, under strict conditions,askquestionstothemanagementoutside of the holding of the meeting (8) . In any case, certain informationmaybeprotectedbybusiness confiden- tiality and not disclosed to the shareholders. In light of the influence of common law practices, some shareholders’ agreements that govern Lux- embourg joint ventures and are subject to a distinct legal framework from the Luxembourg lex societatis tend to establish specific terms and conditions con- cerning the right to information. This may entail providing supplementary information and estab- lishing periodic communication channels between shareholders and the company’s management. In the absence of publication of the agreement and the assumption that its provisions are not reflected in the articles of association of the Luxembourg company, it seems challenging, if not impossible, for the Luxembourg authorities, including the no- tary, to exercise control, allowing its provisions to be applied freely. But this issue assumes a wholly distinct character in the context of shareholders dis- putes. In accordance with the tenets of private in- ternational law, submitting a contract to the jurisdiction of a foreign state doesn’t inherently preclude the application of national law. In certain instances, the lattermaymandate the invocation of the rules of the lex societatis with a view to safe- guarding the public policy of the state of origin. (9) It can be argued that contractual stipulations that attempt to limit or modify the right to information beyond what’s provided for by the lex societatis may be declared inapplicable. In the context of business, where amicable dispute resolution is oftenpreferred, the question of the ap- plicable law to a shareholders’ agreement and its content is of crucial importance when it’s being drafted. This issue is particularly salient when shareholders of disparate nationalities seek to have their relations governed by their own national law. The inclination to opt for a legal framework per- ceived as more flexible or advantageous can give rise to a superficial analysis of the legal implica- tions, which, in certain situations, may provemore destructive than protective. A proactive and en- lightened approachwill not only safeguard the in- terests of shareholders but also foster harmonious and enduring collaboration within the company. 1) “Gouverner, c’est prévoir ; et ne rien prévoir, c’est courir à sa perte.” EmiledeGirardin 2)Seethestudyonthelawapplicabletocompaniespublishedby theEuropeanCommissioninJune2016 3) Article 1 paragraph 2 paragraph f) of Regulation (EC) No 593/2008oftheEuropeanParliamentandoftheCouncilof17June 2008onthelawapplicabletocontractualobligations(RomeI)lists theissuescoveredbycompanylaw 4)Article 3 paragraph 1 of Rome I states that the contract is gov- ernedbythelawchosenbytheparties 5)Seearticle420-1(2)oftheCompanyLawfor sociétésanonymes and article 710-6(2) of the Company Law for sociétés à respons- abilité limitée 6)Seearticle461-6oftheCompanyLawforsociétésanonymes 7) Questions raised during a general meeting must be justified andlimitedtotheitemsontheagendaofthegeneralmeeting 8)Article 1400-3 of the Company Lawalso provides for the pos- sibilityforoneormoreshareholdersrepresentingatleast10%of the share capital or of the votes attached to all existing shares, ei- ther individually or by grouping together in any formwhatso- ever, to be able to put questions in writing to the company’s management body about one ormoremanagement operations. However,this 9)Article9ofRomeI Shareholders’ agreement and applicable law: Awide range of possibilities? 20 startups sélectionnées pour le programme Fit 4 Start #15 L es noms des 20 startups qui participeront à la 15 e édition du programme d’accéléra- tion Fit 4 Start début 2025 ont été officiellement annoncés lors des Luxembourg Venture Days, l’évé- nement phare de l’écosystème des startups luxembourgeoises. Ces Luxembourg Venture Days, qui ont attiré plus de 2.600 personnes à Luxexpo The Box, étaient organi- sés les 16 et 17 octobre conjointe- ment par Luxinnovation et la Luxembourg Private EquityAsso- ciation, sous l’égide de Startup Luxembourg. Suite à l’appel à candidatures lancé en juindernier, lors de la cérémonie de gra- duation des startups ayant achevé avec succès l’édition 14 du programme Fit 4 Start, pas moins de 420 candidatures de startups provenant de près de 70 pays différents avaient été déposées. Le Luxembourg, l’Allemagne, la Grand Bretagne et la France sont les pays les plus représentés parmi les postulants. Au cours de l’édition 2024 des Luxem- bourg Venture Days, 60 entrepreneurs actifs dans les secteurs du digital, des technologies de la santé ou de l’espace, ont pitché au cours d’intenses sessions devant lesmembres des différents jurys. Au terme de la cérémonie de clôture de l’événement, en présence de S.A.R. le Grand-DucHéritier, l’identitédes 20 star- tups retenues a été dévoilé : 11 dans le di- gital, 5 dans les technologies de la santé et 4 dans l’espace. Start-up sélectionnées Digital -Algora -DataSecureAnti-RamsonwarebyCortex Security SA - EloraCall - Essembl - LetzTrail -MAICOS - Social Cooling - Symbiotics - TradDocs - VizyOnAir -Wequity Technologies de la santé - Glacies Biome - Global Particle Therapy -Helical - TrialCraft - ZenZen Espace -Aeon - ESGSAT - Exobiosphere - TerraEye «Avec plus de 420 candidatures reçues pour cette édition de Fit 4 Start #15, nous avonsenregistréledeuxièmetauxdepar- ticipation le plus élevé jamais vu», ex- plique Sven Baltes, Manager – Startup Relations chez Luxinnovation. «Celametenlumièreletalentexceptionnel de notre communauté entrepreneuriale locale,ainsiquel’intérêtinternationalpour l’écosystème luxembourgeois». Unnouveaupland’action pour les startups «Le Luxembourg offre un écosystème dynamiquequenouscontinueronsàren- forcer et à développer. Le gouvernement s’engage à fournir lemeilleur environne- mentpourquevosstartupspuissentcroî- tre, innover et réussir», a expliqué le ministre de l’Économie, des PME, de l’Énergie et du Tourisme, Lex Delles, s’adressant auxnombreuxentrepreneurs etinvestisseursprésentsdansl’assistance. Leministreaégalementannoncélelance- ment d’un plan d’action dédié aux star- tups. «Il s’agira d’une série de mesures concrètes destinées à accompagner les startups à toutes les étapes de leur déve- loppement, depuis leurs débuts jusqu’à leur croissance jusqu’à cequ’elles réussis- sent». Parmi ces mesures, qui seront dé- taillés dans les mois prochains, figure un renforcement du rôle de l’incubateur TechnoportetduNationalResearchFund dans l’émergence de nouvelles spinoffs. Les participants à Fit 4 Start restent auLuxembourg Le programme d’accélération Fit 4 Start consiste en un accompagnement spécia- lisé d’une durée de six mois, ainsi que d’un financement individuel de 50.000 € de la part du ministère de l’Économie. Celles parmi ces sociétés qui termineront leprogrammeetquiréussirontàleverdes fondspourront recevoir jusqu’à 100.000 € supplémentaires d’aides étatiques. «Le coaching et le financement proposés par le programme Fit 4 Start sont claire- ment attrayants», a expliquéSashaBaillie, la CEO de Luxinnovation. «Mais ce n’est passeulementl’attractionquicompte,c’est aussi la rétention ! Et si l’on regarde les 14 éditions précédentes du programme, on constate que 80% des startups qui y ont participé sont toujours présentes ici au Luxembourg. Je pense que cela confirme que lepays offreunenvironnement favo- rable où les startups peuvent se dévelop- per, prospérer et cibler les marchés européen et internationaux». ©Luxinnovation