Tag: Financial guarantee

France vs. Soladi, April 1998, CAA No. 94NC00880

France vs. Soladi, April 1998, CAA No. 94NC00880

In the Soladi case the court deemed it to be an “abnormal act of management” to provide an explicit financial guarantee free of charge, unless direct actual benefit for the entity providing this support can be justified. Click here for translation France vs Soladi_30_avril_1998_CAA 94NC00880 ... Continue to full case
France vs. Carrefour, Feb. 1992, CE no 81690/82782

France vs. Carrefour, Feb. 1992, CE no 81690/82782

In the French Carrefour case, the French Supreme Court considered as arm’s length a rate of 0.25% for for a loan guarantee. The remuneration should be commensurate with the risk incurred as well as with the market value of this service, irrespective of the actual cost. Click here for translation Carrefour 1992_81690_82782_CE ... Continue to full case