Chapter IX: Leasing of shares

The Articles of Association may provide that the shares of sociétés par actions or the corporate units of sociétés à responsabilité limitée subject to corporation tax by operation of law or by option may be leased, within the meaning of the provisions of Article 1709 of the Civil Code, for the benefit of an individual. Share leases may only relate to registered securities that cannot be traded on a regulated…

The lease contract is recorded in a notarial or private deed subject to the registration procedure. On pain of nullity, it includes particulars, the list of which is set by decree in the Conseil d’Etat. It is made enforceable against the company in the forms provided for in Article 1690 of the Civil Code. The delivery of the shares or units is made on the date on which, in the…

The legal or statutory provisions providing for the approval of the transferee of shares or corporate units are applicable under the same conditions to the lessee. The voting right attached to the leased share or corporate unit belongs to the lessor at meetings ruling on amendments to the company’s articles of association or change of nationality, and to the lessee at other meetings. For the exercise of the other rights…

The lease is renewed under the same conditions as when the initial lease was concluded. In the event of non-renewal of the lease agreement or termination, the more diligent party shall cause the entry in the register of registered shares of the joint stock company or in the articles of association of the limited liability company to be deleted.

Any interested party may request the president of the court ruling in summary proceedings to enjoin the legal representative of the joint stock company or limited liability company, under a penalty payment, in the event of service or expiry of a lease agreement relating to shares or corporate units in the company, to amend the register of registered shares or the articles of association and to convene the shareholders’ meeting…