Profits made by a company

This decision provides important insight into your family and estate rights. Here is what it means for you.

The situation

The profits made by a company take on the legal character of fruits only when they are distributed as dividends, which have no legal existence before the financial year's accounts have been approved by the general meeting, the distributable sums determined by that meeting, and the share attributable to each shareholder established. It follows that, before such distribution, the usufructuary of the shares has no right over the profits, and that by taking part in the general meeting which resolves to allocate them to a reserve account, the usufructuary makes no gift to the bare owner.

What the law says

This decision confirms the fundamental principles of property law.

Key points to remember

• Strictly observe the statutory time limits for bringing an appeal
• Keep all your supporting documents (certificates, deeds, correspondence)
• Plan ahead: preventive legal advice is always less costly than a dispute

For an analysis of your situation: 30-minute consultation at €70 with Maître Perucca.