#2014-948Ordinance No. 2014-948 on Governance and Operations of Public Participation Companies
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The ordinance establishes governance rules for public participation companies in France, particularly those in which the state or its public establishments own a majority share. It outlines the structure of boards, the appointment of state representatives, and provisions for employee representation. Key aspects include delineating when state approval is needed for transferring ownership to the private sector and setting forth the conditions under which operations related to state ownership can occur.
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Key Changes
- Establishment of rules regarding the governance of state-owned enterprises
- Introduction of state representation in boards of companies with significant public investment
- Regulatory requirements for transferring majority ownership of public companies to private entities
Obligations
What this law requires
The State must designate a representative on the board of administration, supervisory board, or equivalent deliberative body for companies where the State or its public establishments hold more than 50% of capital (whether directly, solely, or jointly).
The State may designate a representative on deliberative bodies of companies where the State alone directly holds more than 10% of capital.
For companies where the State holds between 10% and 50% of capital directly and solely, one or more board seats proportional to its participation must be reserved for members the State can propose, with a minimum of two seats if the board has more than ten members.
Any compensation received by the State's representative for exercising their mandate must be paid to the State budget, not retained by the representative.
If the competent body of the company refuses persons proposed by the State under Article 6, the State may appoint members provisionally by letter addressed to the company, subject to ratification by the next ordinary general assembly.