The ut singuli action is liability against social leaders

Milberg Weiss Bershad & Schulman, one of the most prestigious US law firms, specializing in civil proceedings for collective name ("class actions"), was recently charged for fraud. Two of its associated lawyers are accused of used for purely fictious who have reported victims during of "class actions" that the cabinet agreed. They could suffer more than twenty years of imprisonment!

This case made great noise, because the American firm is known to the courts as "legitimate representative of the victims." He defends such groups of small shareholders considering himself injured by the conduct of listed companies. In France, such collective actions exist yet at the same, but several legislative proposals are now under study. However, shareholders have today in France of several opportunities to hear their rights, either themselves, or by combining or in affiliating associations.

The application "ut singuli."

Two types of actions allow the liability of managers, or even society itself. On the one hand, the shareholders may act in an individual action if they have suffered a personal injury. On the other hand, they have a right to submit applications for the benefit of society, social action ("ut singuli") own. These two actions respond to different conditions, but in both cases they may be taken collectively by a set of shareholders, or isolation, by a single shareholder, and this regardless of the amount of its participation.

Individual action aims to engage the responsibility of leaders if they committed a separable fault of their duties. It may be brought only when the damage is specific to one or to shareholders and separate from the overall harm to society. It is when the officer ignored the rights of the partner or has committed an offence under the law of companies resulting in personal injury. The action is attached to the person of the shareholder, and he retains the right to act, even after having surrendered his title. Conversely, a partner fails to criticize an individual action, deliberations or actions occurred before its entry into the society. Shareholders who suffered personal injury the same facts may be grouping and give one or more of them mandate to act in their name.

Social action, or "ut singuli", allows it to shareholders to act rather than for their individual benefit, but for the benefit of society, law enforcement or civil courts. The action is, here, somehow attached to the title, the applicant to be shareholders at the latest on the day of the commencement of proceedings and remain for the duration of the trial. "Ut singuli" can be formed by a shareholder who has acquired securities of the company concerned only after the completion of the injurious. The "ut singuli" action is liability against social leaders.

Avoid abuse

It is the individual available to each shareholder, but may also be exercised collectively, "or by an association meets the requirements laid down in article l. 225 - 120, or grouping in the conditions laid down by order in Council of State." However, it is interesting to note that in the case of collective actions the association or group of shareholders in question has capacity to act only if it brings 5 of the voting rights (or even less if social capital is greater than 750,000 euros).

Thus, even if the "class actions" American are not yet fully entered the French legal landscape, including for the collective exercise of individual action, is not less that the right of companies opens already largely the collective actions of shareholders against the leaders.

But beware, it's for the shareholder to integrate groups of shareholders-based social and ethical indisputable (Adam, Appac)... or, if they are only to be represented by rigorous lawyers, to avoid the pitfall of abusive actions, see spammy approaches to bullying or to blackmail. Indeed, first protection which may claim any shareholder is the company of which he is a partner against any hungry predator of its single enrichment and conscious of the bargaining strength that the coverage of its action, it was unfounded, can lead to.

The future "class action" French would no doubt efficiency and loyalty by providing a choice to the shareholder: he communicates and is only justice, assuming the consequences of any collateral damage; either he gives mandate for an association or a professional advised adhering to an ethical Charter, including the integrity, professionalism and objectivity are not questionable, and it is they who bear the risk of collateral damage.