ILN: Establishing A Business Entity: An International Guide

[ESTABLISHING A BUSINESS ENTITY IN FRANCE] 194

ORDINARY GENERAL MEETINGS

Scope of competence

• approval of accounts (meeting must be held at least annually for this purpose) • appointments and changes in membership of the management bodies and auditors • approval of regulated agreements • majority of shareholders in attendance or represented

• approval of accounts (annual meeting must be held for this purpose) • appointment and removal of gérants • appointment of auditors • approval of regulated agreements

• procedure freely set by the articles of association

• N/A

Passing of resolutions

simple majority of the shares

• procedure freely set by the articles of association

• N/A

• articles of association may provide for higher majority (unanimity is prohibited for dismissal of a gérant who is also a shareholder) • resolutions which are approved without following the majority requirements may be cancelled at the request of any interested party

EXTRAORDINARY GENERAL MEETINGS

Scope of competence

• decisions requiring amendment of articles of association

• decisions requiring amendment of articles of association

• procedure freely set by the articles of association

• N/A

Passing of resolution

• two-thirds majority of shareholders in attendance or represented

• three-quarters majority of the shares for most resolutions • higher majority for certain specific resolutions • resolutions which are approved without following the majority requirements may be cancelled at the request of any interested party

• procedure freely set by the articles of association although certain decisions (e.g., which increase shareholders' liabilities) require a unanimous vote, for example, the modification or deletion of the clause requiring prior approval of a share transfer

• N/A

ILN Corporate Group – Establishing a Business Entity Series

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