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. FranceShare capital increase might be used under a sauvegarde or plan de continuation inorder to recapitalize the company. Such share capital increase might even be acondition of the plan de sauvegarde or plan de continuation. The debtor must obtainthe prior approval of the extraordinary shareholders’ meeting, and of the specialgeneral meetings (assemblées spéciales), as the case may be. The existing or newshareholders’ commitments will only be binding after the Court acknowledges thedraft plan. This new cash contribution from shareholders will not benefit from theprivilège de New Money (see Paragraph III. A. 9. b., supra).4. Liquidating a poorly performing subsidiarya. GermanyAn insolvency proceeding can be a good and effective way to close down a poorlyperforming subsidiary in Germany. However, a company considering such a movemust remain aware of the potential risks related to any insolvency proceeding. Inorder to avoid surprises, the company must act very carefully and always use a locallawyer with highly specialized skills and experience.b. FranceInternational companies are more frequently considering closing poorly performingsubsidiaries through insolvency liquidation proceedings in order to avoid paying forredundancies. Before using liquidation proceedings, the holding company mustmake sure that the subsidiary:(i) has been properly managed and (ii) wasindependent from the other group companies as regards its management, in order toavoid any liability as shareholder and/or as de facto or de jure manager of thesubsidiary. (See Section III. A. 15. b., supra.) The holding company should also58