On 22 July 2024, an important amendment came into force that updated the Companies and ssociations Code (CAC). The new rules, in Articles 4:14 and 4:26 of the CAC, introduce a right of pposition for partners in simple, general or limited partnerships. From now on, partners who are not directly involved in legal proceedings will be able to lodge an opposition to judgements passed against their partnership.
What does this right of opposition entail?
Partners in simple, general or limited partnerships have traditionally been jointly and severally liable for their firm’s debts. This means that a court judgement against the partnership was usually also binding for the partners, even if they themselves were not involved in the proceedings. This could lead to situations in which partners were convicted without having had the chance to defend themselves.
The law of 21 April 2024 fundamentally changes this, by introducing a right of opposition. This new right allows partners to defend themselves against judgements condemning their firm, even if they were not a party to the proceedings. The aim is to provide partners with more legal certainty and equality, so that they are not faced unexpectedly with legal decisions taken without their knowledge.
Why is this important?
The need for this change arose from a ruling by Belgium’s supreme court, the Court of Cassation, on 13 April 2018, which found that partners who had not been summoned, could not be considered parties to the proceedings. This created uncertainty and legal inequality between partners. The law of 21 April 2024 provides an answer, by allowing partners who are not directly involved in proceedings to protect their interests.
This amendment not only provides more legal certainty, but also ensures that partners enjoy the same rights that already exist in other areas, such as tax law and bankruptcy law.
Our support in legal disputes
Although this new law provides plenty of clarity, it can be challenging for partners to use their rights effectively. PKF BOFIDI Legal has the necessary expertise to assist you in legal proceedings, such as filing an opposition, and to ensure that your interests as a partner are best protected. We can guide you through all litigation issues so that you can rest assured you are acting in a legally correct and timely manner. Please feel free to contact our PKF BOFIDI Legal team for further support.
This article was written by Johan Doms.