L'Oréal faces new problem over Liliane Bettencourt
Guardianship clause complicates the situation
A fresh problem appears to have emerged for L'Oréal over the position of Liliane Bettencourt, the 88-year-old daughter of the company's founder and major shareholder. An agreement last April underlined a reconciliation in the long running dispute between mother and daughter but a report from doctors effectively recommending that Mme Bettencourt be placed under guardianship protection is seen as complicating the situation for company management.
While L'Oréal has declined all comment on the issue and is understood to be allowing the situation to evolve, Mme Bettencourt retains her key place on the board. Three members of the Bettencourt family now sit on a board of 14 – Liliane Bettencourt, her daughter Francoise and the husband of Francoise, Jean-Pierre Meyers.
If guardianship is applied, a guardian would be appointed who would, as necessary, help Mme Bettencourt to exercise her voting rights on the board. Some observers have suggested she must resign since it would be impossible for her to continue if a court decided she was incapable of coping. This would in turn raise the question of the sale of family held shares.
