Articles

July 2019/CORPORATE:  PACTE law liberalizes use of preferred shares to encourage financing of companies

Preferred shares of stock are a tool allowing business owners to achieve a number of business objectives, such as raising fresh capital, organizing a succession, or incentivizing employees.  Article 100 of the new PACTE law liberalizes the use of preferred shares, removing a number of prior restrictions on their use, with the aim of encouraging companies to use preferred shares as a tool to raise capital and achieve other objectives.

Article PACTE preferred stock v1 July 2019

This article was also published in “La grande bibliothèque du droit” of the Paris bar in July 2019, at http://www.lagbd.org/index.php/PACTE_law_liberalizes_use_of_preferred_shares_to_encourage_financing_of_companies_(fr).

 

May 2019/CORPORATE:  PACTE law for growth and transformation of companies modernizes corporate law rules

Doing business in France has just become a little easier.  The French legislature has adopted the PACTE law for the growth and transformation of companies, part of a series of business-friendly reforms lightening constraints so as to encourage small- and medium-sized companies to grow and create jobs. Following a review by the constitutional council, which approved a majority of its provisions , the PACTE law was published on 23 May 2019.

This article discusses PACTE provisions on corporate law:

  • Company registration simplification
  • Unique electronic company register and simplification of declaration procedures
  • Outside auditor (“commissaire aux comptes”) for certification of financial statements

Article PACTE law v5 June 2019

This article was also published in “La grande bibliothèque du droit” of the Paris bar in June 2019, at www.lagbd.org/index.php/PACTE_law_for_growth_and_transformation_of_companies_modernizes_corporate_law_rules_(fr).

 

February 2019/COMPLIANCE:  New French law Sapin II on anti-corruption programs and whistle-blowing systems (originally written in Oct. 2017) (available upon request)

Companies with a significant presence in France should take note of important new French legislation requiring large companies to implement anti-corruption compliance programs.  The Sapin II Law also requires mid-sized companies to implement whistle-blowing systems to collect and handle reports of compliance violations.  This development represents an important endorsement of compliance programs and their value and importance.