The Civil Real Estate Company (SCI) is a form of civil company whose assets consist of real estate and do not produce economic activity. The social purpose determines whether the SCI engages in economic activity or not.
Consequently, Article L 612-5 of the French Commercial Code on regulated agreements applies “to the non-commercial private legal entity that conducts an economic activity.”
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If an SCI engages in economic activity and holds a guarantor for a mortgage, the moral entity has credit regarding the information to the bank that authorized the guaranteed mortgage. Therefore, it is required to communicate the main upward column and the interests that will be decorated by the company.
Article 1848 of the French Civil Code specifies that the administrator of the company performs all acts related to the interest of the institution.
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The French Court of Cassation has sanctioned because, contrary to the interest of the company, the establishment of a mortgage on the property of an SCI in favor of another moral entity, despite the unanimous agreement of the partners. Similarly, the mortgage, guaranteed by a mute in favor of the administrator and approved at the shareholders’ meeting, is inadmissible for the SCI, as it is contrary to the interest of the company. It is therefore necessary to carefully examine the purpose of the moral entity in order to meet the needs of corporate life to prevent management acts from being censured by the courts.
Summary:
Civil Real Estate and Economic Activities
REAL CIVILS AND INT
Members
Undivided Ownership
THE SECTION OF PROPERTY LAW — THE STATUS
THE DIVISION OF THE RIGHT OF WHICH —
THE SKI — MEX Transmission
file for download: SOCIETA CIVILLEIMMOBILIARE_
Tag : SCM: what is it?