French Business Law Archive

How to terminate a business relationship with a French company?

December 3, 2023

French law prohibits the sudden termination of a business relationship with a French company, regardless of whether such relationship is based on a formal written contract or stems from ongoing informal business dealings. Pursuant to article L. 442-1 II of the French Commercial Code, in the event a party to an established commercial relationship terminates such a relationship without sufficient prior notice given in writing, it must indemnify the other…

French law on precautionary attachment of assets

December 1, 2023

In France, when a creditor has difficulty in obtaining payment, he generally proceeds, before any litigation on the merits, to a protective (precautionary or interim) attachment (or seizure) (the exact term in French is “saisie-conservatoire“, which means literally “conservatory seizure”) of his debtor’s assets, as a means to exert pressure on the debtor to obtain payment. What is a precautionary attachment of assets pursuant to French law and in what…

Precautionary arrest of aircraft in France

December 1, 2023

The precautionary arrest of an aircraft in France is an emergency measure which allows a creditor, even without a final judgment on the validity of its claim, to immobilize the aircraft of his debtor if he proves that the creditor’s claim appears to be well-grounded in principle and that there are circumstance which threaten the collection of the debt. In such case, the conservatory arrest of the aircraft in France…

Street commerce: what are the rules to follow in France?

November 29, 2023

If you are planning a business trip to France to sell your products in the street as part of a fair, show or another international event organized in France, you will have to comply with certain French rules regarding street commerce. More specifically, French law requires that any merchant or craftsman who sells products outside the municipality on the territory of which they have their registered place of business as…

Duties and liabilities of the managers (“gérants”) of a French General Partnership (SNC)

November 25, 2023

Duties of the managers (“gérant”) of a French General Partnership (“SNC”) The managers (“gérants”) of a French General Partnership (“SNC”) have the duty to manage the company in compliance with its corporate interests and French laws. In the event of violation of their duties, and depending on the circumstances, they may incur civil, criminal or tax liability. Civil liability of the managers of a French General Partnership to third parties…

Powers of the managers (“gérants”) in a French General Partnership (SNC)

November 19, 2023

Limitations on the powers of the managers of a French General Partnership which may result from its bylaws The bylaws of a French General Partnership may include limitations on the powers of its managers (“gérants”) (French Commercial Code, art. L 221-4, para. 1). Such limitations of powers may prohibit the managers from undertaking commitments on behalf of the General Partnership beyond certain financial or strategic thresholds, without the prior authorization…

Removal of managers (“gérants”) from a French General Partnership (“SNC”)

November 17, 2023

The term of office of a manager (“gérant”) of a SNC is determined either in the bylaws of the General Partnership or in the decision taken by the partners appointing the manager. In the absence of specific provision regarding duration, the manager may remain in office indefinitely, unless he/she is dismissed or resigns from office. Dismissal of a manager (“gérant”) from a French General Partnership by the partners of the…

Register a French General Partnership (“SNC”)

November 17, 2023

What is a French general partnership (“société en nom collectif” or “SNC”)? The French equivalent of General Partnership is called a “société en nom collectif” or “SNC”. It is a commercial company by definition of the law, regardless of whether the activity it carries is of commercial or civil nature. It has legal personality. The French General Partnership (“SNC”) is characterized by strong intuitus personae, which means that the personality…

Appoint managers (“gérants”) of a French General Partnership (“SNC”)

November 16, 2023

How are the managers (“gérants”) of a French General Partnership (“SNC”) appointed? The managers (“gérants“) of a SNC may be appointed: in the bylaws of the SNC by a separate resolution of the members of the SNC If no managers have been appointed in the bylaws of the SNC or by a subsequent resolution of the members, then all members of the General Partnership are deemed to be managers. Indeed,…

Prejudgment Attachment of Assets in France

November 7, 2023

1° How to obtain a prejudgment attachment of the assets of a debtor in France? Any person whose claim appears to be well-founded in principle may ask the judge for an authorization to take a protective measure against the debtor’s property, without a prior order, if he can prove that there are circumstances likely to threaten its recovery (French Code of Civil Enforcement Procedures, art. L. 511-1 and R. 511-1)….