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Inapplicability of Art. 1956 of the Civil Code to a shareholder and guarantor for a future obligation

Inapplicability of Art. 1956 of the Civil Code to a shareholder and guarantor for a future obligation

Marco Leonardi, Daniela Runggaldier

The guarantor, who is simultaneously a shareholder of the debtor company, is assumed to be always informed of the debtor’s economic conditions. Based on such assumption, case law (see judgment no. 941 of 19 December 2022 of the Court of Terni) - in accordance with previous rulings of the Supreme Court of Cassation (no. 2902/2016) - recently confirmed the inapplicability to the guarantor-shareholder of the protection provided under Art. 1956 of the Civil Code, according to which the creditor has the burden of requesting the guarantor’s authorization before lending money to a third party whose financial condition has worsened after the guarantee has been issued. Hence, the guarantor, duly informed about the change in the debtor’s financial situation, may avoid fulfilling an obligation that has become more burdensome without the guarantor’s fault. Therefore, case law holds that such provision, aimed at safeguarding the unaware guarantor, cannot apply to the guarantor who, in the capacity as shareholder, must always be informed of the changed economic conditions of the guaranteed company, as well be in the position to take actions to prevent the detrimental management of the company itself. In conclusion, in order not to unwittingly increase the risks assumed as a guarantor, the shareholder must actually monitor the economic situation of the controlled company and, possibly, early revoke the guarantee.