Incompatibility: Chairman Of The Board And Effective Director Functions

In its judgment of 24 April 2018 in joined cases T-133/16 to T-136/16, the General Court of the European Union ("General Court") rejected the action for annulment introduced by four regional branches of Crédit Agricole ("Applicants") against decisions by which the European Central Bank ("ECB"), in its capacity as prudential supervisor of Crédit Agricole, rejected several appointments.

Although the ECB had approved the appointment of the persons proposed by the Applicants as chairmen of their respective boards of directors, it rejected the simultaneous appointment of these persons as "effective directors" by reference to Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (CRD IV) and, in particular, its Article 88 regarding arrangements ensuring effective and prudent management of a credit institution.