PART ONE: GENERAL PROVISIONS

The provisions of article L. 2335-2 are not applicable in the event of financial difficulties arising, for a municipality, from its shareholding in the capital of a local semi-public company or from the guarantee it has granted for loans contracted by such a company when the shareholding was acquired or the guarantees granted after 8 July 1983, the date of publication of the loi n° 83-597 du 7 juillet 1983…

Each shareholding local authority or group of local authorities is entitled to at least one representative on the Board of Directors or Supervisory Board, appointed from among its members by the relevant deliberative assembly. In a proportion no greater than that of the capital held by all the shareholding local authorities or their groupings in relation to the company’s capital, the Articles of Association set the number of seats they…

Unless otherwise stipulated in their articles of association, semi-public local companies are represented at the meeting of members or shareholders of their subsidiaries, within the meaning of article L. 233-1 of the French Commercial Code, by one of the representatives of the local authorities or their groupings on their board of directors or supervisory board, appointed by the latter. This representative must come from a local authority or group exercising…

In the year following the appointment of any newly elected member as a member of the board of directors or the supervisory board of a local semi-public company, the said company offers the elected member training in the operation of a public limited company, financial control, the duties, depending on the form of the company, of the board of directors or the management board and the supervisory board, as well…

Local elected representatives who hold the position of member or chairman of the board of directors, managing director, deputy managing director, chairman and managing director, member of the management board, member or chairman of the supervisory board, chairman or manager of a company or director or member of the assembly of an economic interest grouping in which the local semi-public company holds a stake may only receive remuneration or special…

When a local authority or group of local authorities has granted its guarantee for loans contracted by a local semi-public company, it has the right, provided that it is not a shareholder directly represented on the board of directors or supervisory board, to be represented at the local semi-public company by a special delegate appointed from among its members by the deliberative assembly of the local authority or group. The…

The provisions of articles L. 2253-1 and L. 3231-6 do not apply to the acquisition of shares whose purpose is to give local authorities or their groupings a majority stake in the capital of local semi-public companies.

By way of derogation from article L. 225-218 of the French Commercial Code, local semi-public companies are required to appoint at least one statutory auditor. This obligation also applies to companies controlled, within the meaning of article L. 233-3 of the same code, by local semi-public companies. In the absence of such an obligation for non-controlled companies, the shareholder local authorities and groupings may make the agreement required pursuant to…