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Partial unconstitutionality of paragraph 2 of article 398 of the Commercial Companies Code

Provision laid down in article 398, paragraph 2 of the Commercial Companies Code, qualified as unconstitutional

The Ruling no. 774/2019, of the Constitutional Court, which declared the unconstitutionality, with general mandatory force, the provision laid down in article 398, paragraph 2 of the Commercial Companies Code, in so far as it determines the termination of the employment contract, entered into less than one year ago, of a employee who is appointed administrator of the employer company, was published in the Official Gazette of the Republic of Portugal on January 27th, 2019.

The above mentioned provision of the Commercial Companies Code had already been considered unconstitutional by the Constitutional Court in three specific decision: Rulings Nos. 1018/1996, 626/2011 and 52/2019.
Considering that the provision in question has been in force for more than 30 years, for reasons of equity and legal certainty, the ruling limits the effects of unconstitutionality, so that they occur only as from its publication.

To access the full version of the Ruling no. 774/2019, of the Constitutional Court, please click here.

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