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The Directorate General for Legal Certainty and Public Faith has ruled that amending articles of association to specify and detail the corporate purpose does not constitute a substantial alteration (Facts I). In this instance, the inclusion of franchise activities and specific CNAE codes is considered a mere operational clarification of an activity already covered (Facts I). Consequently, the shareholders' right of withdrawal provided for in Article 346 of the Capital Companies Act does not apply (Facts I).
For limited companies, this ruling confirms that the specificity of CNAE codes or the detailed description of business models (such as franchising) within the corporate purpose does not equate to a change in activity (Facts I). This reduces the risk of minority shareholders exercising their right of withdrawal by attempting to challenge changes that only aim to provide legal certainty to the company's operations (Facts I).
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