Section 1: Definitions

Where one company owns more than half of the capital of another company, the latter shall be deemed, for the purposes of sections 2 and 4 of this chapter, to be a subsidiary of the former.

Where one company owns between 10% and 50% of the capital of another company, the former shall be deemed, for the purposes of sections 2 and 4 of this chapter, to have an interest in the latter.

I.- For the purposes of sections 2 and 4 of this chapter, any natural person or legal entity is deemed to control another:

Any shareholding of even less than 10% held by a controlled company is considered to be held indirectly by the company controlling that company.

The Public Prosecutor and the Autorité des marchés financiers for companies whose shares are admitted to trading on a financial instruments market mentioned in II of Article L. 233-7 are empowered to take legal action to establish the existence of control over one or more companies.

The decision by which a company which owns more than half the capital of another company within the meaning of Article L. 233-1, which has a holding within the meaning of Article L. 233-2 or which exercises control over a company within the meaning of Article L. 233-3 undertakes to assume, in the event of the failure of the related company, all or part of the preventive and remedial obligations…