The manager of a SCI can be dismissed if he does not convene the partners to approve the accounts (Cass. com. 23-10-2019 n° 17-31.653 F-D)
Many partners of SCIs, especially in family-owned SCIs, neglect to approve the accounts on the grounds that, unlike commercial companies, SCIs are not required to file accounts with the registry.
However, Article 1856 of the Civil Code requires the manager to report at least once a year to the partners on his management and failure to comply with this obligation exposes the manager to the risk of dismissal.
This is what the French Supreme Court ruled in a decision of October 23, 2019 (Cass. com. 23-10-2019 No. 17-31.653 F-D).
It does not matter what the manager's family ties are with the partners, nor does it matter that the partners have never asked for the manager's management report.
The obligation that weighs on the manager must be carried out instantaneously, without the partners needing to remind him of it.
In the absence of approval of the accounts, the manager therefore runs the risk, in the event of a dispute with his partners, that the judge seized by the latter will pronounce his dismissal.