Chapter III: Debt securities

The decision to issue shares is taken by the general meeting of the association’s members on the basis of a reasoned proposal by the directors. The General Meeting also decides on the amount of the issue, the extent of its distribution, the subscription price of the securities and their remuneration or the methods of determining these elements. It may delegate to the directors, for a period not exceeding five years,…

The provisions of articles L. 213-5 and L. 213-6 of this Code and of articles L. 228-1, L. 228-5, L. 228-43 to L. 228-89, L. 242-10, L. 245-9 to L. 245-12 (1°) and L. 245-13 to L. 245-17 of the French Commercial Code apply to bonds issued by associations. The provisions mentioned in the previous paragraph relating to boards of directors, management boards or company managers are applicable to associations…

The provisions of articles L. 237-1 to L. 237-31 of the French Commercial Code apply in the event of the dissolution of the issuing association, subject to the provisions of the law of 1 July 1901 relating to the contract of association and articles 21 to 79 of the local civil code applicable in the departments of Bas-Rhin, Haut-Rhin and Moselle.

The directors of associations issuing bonds are subject to the disqualifications provided for in article L. 500-1.

The liability of the members of the bodies responsible for the management, administration or control of associations is that defined, depending on the case, by article L. 225-251, the second paragraph of article L. 225-253, articles L. 225-254 and L. 225-257 of the French Commercial Code. When an association issues bonds and meets the criteria set out in article L. 612-2 of the French Commercial Code, the provisions of article…

Associations registered in the Trade and Companies Register under the conditions set out in this sub-section may form a group to issue bonds. The grouping is carried out within the framework of an economic interest grouping under the conditions set out in the second paragraph of article L. 251-7 of the French Commercial Code. Economic interest groupings formed by associations with a view to issuing bonds are required to redeem…

The Public Prosecutor or any interested party may apply to the competent court to have the association or group issuing bonds in breach of articles L. 213-8 and L. 213-10 dissolved and the bonds issued redeemed without delay.

A decree in the Conseil d’Etat shall, where necessary, lay down the conditions for the application of this sub-section.