Italy updates

Arbitration & ADR

Supreme Court of Cassation rejects appeal of arbitral award for alleged violation of substantive rules
  • Italy
  • 25 April 2019

The Supreme Court of Cassation recently addressed a supply contract between two parties that contained a ritual arbitration clause. Pursuant to the clause, an arbitration proceeding had been commenced, which had resulted in the defendant being ordered to pay damages. The defendant had subsequently appealed the arbitral decision for alleged violation of the procedural rules, despite the fact that appeals for the violation of substantive rules are precluded by legislation and case law.

Supreme Court of Cassation rules on nullity of arbitral award for late delivery of decision
  • Italy
  • 21 March 2019

The Supreme Court of Cassation recently found that parties alleging nullity of an arbitral award for the late delivery of the decision must notify the other parties and arbitrators before the award's deliberation pursuant to the Code of Civil Procedure. The decision strongly reaffirms a general principle of primary importance regarding arbitration under the code.

Real estate leasing and mandatory mediation
  • Italy
  • 07 February 2019

The Supreme Court of Cassation recently examined the relationship between real estate leasing agreements and mandatory mediation in banking and finance agreements. Basing its decision on Article 5 of Legislative Decree 28/2010, which provides that mandatory mediation must be attempted in banking and finance agreements, the court found that in legal proceedings regarding real estate leasing agreements, it is not mandatory to attempt mediation.

Decision on validity of arbitration clause not appealable before Supreme Court of Cassation
  • Italy
  • 06 December 2018

In a recent decision the Supreme Court of Cassation – while addressing a question relating to the ritual or non-ritual nature of an arbitration clause – seized the opportunity to reaffirm that the decision of a judge on the validity and effectiveness of an arbitration clause for non-ritual arbitration is not appealable before the Supreme Court of Cassation on the grounds of lack of jurisdiction.

Request for recusal of arbitrator and appealability
  • Italy
  • 04 October 2018

A recent Supreme Court of Cassation decision concerned a tribunal president's rejection of a motion to recuse an arbitrator appointed by the counterparty to a dispute and appoint a third arbitrator. The court found that under Article 815(3) of the Code of Civil Procedure, the decision of an arbitral tribunal president regarding a request for the recusal of an arbitrator cannot be appealed.


Aviation

Contributed by Studio Pierallini
General ban on operation of night-time flights removed
  • Italy
  • 03 July 2019

The Administrative Supreme Court recently ruled on the operation of night-time flights for civil purposes over Italian national territory, issuing a milestone decision that put an end to a 20-year regulatory dispute. The decision means that Italian airports now have parity with those located in other EU member states and has removed the negative effect that the ban had had on competition.

Mind your drone business – recent ENAC initiatives
  • Italy
  • 20 March 2019

The Italian Civil Aviation Authority (ENAC) was one of the first EU aviation authorities to develop national rules to regulate remote-piloted aircraft systems. Pending the EU Basic Regulation's implementation, ENAC has announced the adoption of interim measures and a revision of the existing Italian regulations to align the national legal framework with the implementing acts that the EU Commission will introduce.

Italian antitrust procedure in respect of airlines' new hand baggage policy
  • Italy
  • 16 January 2019

The Italian Competition Authority (AGCM) recently ordered Irish carrier Ryanair and Hungarian carrier Wizz Air to suspend the implementation of a new hand baggage policy that would have charged passengers extra for bringing a standard-sized trolley on board flights. Both airlines successfully challenged the AGCM's decision before the Lazio Regional Administrative Court, which suspended the AGCM decisions by way of precautionary measures.

A step forward in Alitalia sale process
  • Italy
  • 12 December 2018

Alitalia is a leading Italian airline that has faced financial difficulties and related restructuring projects. Following the government's extension of the deadline for completion of the sale of Alitalia, three prospective investors have presented more structured offers. This run of offers represents a step forward in the sale of Alitalia's business, even if negotiations must still be carried out over the next few months.

Application of tax on aircraft noise overruled
  • Italy
  • 20 December 2017

The Rome Division of the Tax Commission recently ordered the full refund of debit notes issued by the Lazio region to a foreign carrier for payment of the tax on aircraft noise pursuant to Regional Law 2/2013. The Tax Commission stated that the carrier had not breached EU Directive 2002/30/EC. Accordingly, it cancelled the debit notes issued by the Lazio region to the foreign carrier and ordered a complete refund of the tax paid by the carrier under the tax on aircraft noise.


Banking

Contributed by Legance – Avvocati Associati
Brexit decree-law comes into force
  • Italy
  • 19 April 2019

The government recently issued Decree-Law 22/2019, which is aimed at ensuring the security, financial stability and integrity of financial markets in the event of a so-called 'hard Brexit'. Under the decree-law, UK banks that carry out activities subject to mutual recognition on the United Kingdom's withdrawal date can continue carrying out their activities in Italy by serving notice to the Bank of Italy. Further, Italian branches of UK banks may continue to carry out their activities by serving notice to the Bank of Italy.

New banking regulation: temporary measures in event of hard Brexit
  • Italy
  • 22 March 2019

The Ministry of Economy and Finance recently published a press release announcing the measures which the Italian government, in close consultation with the regulatory authorities and following discussions with trade associations, intends to take in order to avoid a hard Brexit having a cliff-edge effect on financial activities. During the transitional period provided by the temporary measures, banking intermediaries will be able to continue to operate according to existing laws and regulations.

Virtual currencies in Italy – an overview
  • Italy
  • 27 July 2018

Virtual currencies represent uncharted territory in Italy for various reasons, and the current rules and restrictions will likely need structural adjustments to make them work. The fact that the issuer of virtual currencies for investment purposes is in most cases based in a foreign country (often outside the European Union) could make the scope of current exemptions under the Securities Act too broad.

Remuneration policies in banking sector: public consultation on recommended changes
  • Italy
  • 20 April 2018

The Bank of Italy recently commenced a public consultation on the proposed amendments to Regulation 285/2013 on remuneration policies in the banking sector, the main aim of which is to align the regulation with the European Banking Authority Guidelines of December 2015 and ensure compliance with Articles 74(3) and 75(2) of the EU Capital Requirements Directive. The consultation will end on May 14 2018.

New lease of life in Italy
  • Italy
  • 02 February 2018

With the Competition Law's recent entry into force, the legislature has finally established a clear legal framework by defining the concept of a 'financial lease' and the consequences for banks (or leasing companies) and clients following a breach of contract. These provisions make financial leases a more transparent tool with the aim of boosting their appeal and increasing investment by Italian companies, thus fostering economic growth.


Capital Markets

Bank of Italy consultation on MiFID II and MiFIR provisions
Legance – Avvocati Associati
  • Italy
  • 09 October 2018

The Bank of Italy recently opened a public consultation on certain regulatory provisions to be enacted in order to bring forward the implementation of the EU Markets in Financial Instruments Directive and the EU Markets in Financial Instruments Regulation. The proposed provisions aim to supplement the Italian legal framework regarding the organisational duties of regulated intermediaries that provide investment services and activities, including banks.


Company & Commercial

Contributed by Grieco e Associati
Business judgement rule and liability of non-executive directors
  • Italy
  • 15 July 2019

Italian corporate law establishes the liability of members of the board of directors of joint stock companies depending on whether they are chief executive officers or executive directors or independent and non-executive directors. Recent Supreme Court of Cassation and Milan Court of Appeal decisions focused on the liability of non-executive directors by affirming that they must be proactive and fulfil their duty to be as informed as possible to ensure a suitable standard of corporate governance.

Supreme Court of Cassation examines CEO duties of fairness and transparency
  • Italy
  • 08 July 2019

The Civil Code sets out specific rules which apply in the event that a chief executive officer (CEO) or director has extra-company interests. In the event that such a conflict of interests affects the position of a managing director, they cannot vote in the relevant board of director's resolution on the subject of the conflict. A recent Supreme Court of Cassation Decision has emphasised the duties of transparency and fairness to which company directors and CEOs in Italy must adhere.

Supreme Court of Cassation examines shareholders' agreements and put option clauses
  • Italy
  • 20 May 2019

The Supreme Court of Cassation recently examined the admissibility of a put option clause in a shareholders' agreement of a joint stock company by which one shareholder was committed to indemnify the other shareholders from any losses arising from payments to the company for stock capital contributions or other payments having a similar effect. The court's decision confirms that Italian company law admits shareholder agreement clauses in line with the international principles of lex mercatoria.

New rules for limited liability companies
  • Italy
  • 08 April 2019

The rules concerning the corporate governance of limited liability companies were recently amended. The changes are twofold: some directly affect the bylaws of limited liability companies, while others affect the requirements for appointing professionals who perform auditing and supervisory duties for such companies. The new provisions must be adopted immediately by newly formed companies, whereas pre-existing companies must update their bylaws by 16 December 2019.

Shareholders' agreements – courts clarify rules for listed and non-listed companies
  • Italy
  • 18 March 2019

Italian company law contains specific provisions for shareholders' agreements relating to listed or non-listed companies. Two recent court decisions provide clarity in this regard and confirm that the existing legal framework broadly recognises the admissibility of shareholders' agreements in order to govern the rights and obligations of company shareholders, particularly for joint ventures in the financial, trade and industrial fields.