Section 2: The banques populaires

The banques populaires may only carry out transactions with traders, industrialists, manufacturers, craftsmen, boatmasters, commercial companies and members of the liberal professions for the normal exercise of their industry, trade, craft or profession. They are, however, authorised to lend their assistance to their members and to participate in any transactions guaranteed by a mutual guarantee company. They may also receive deposits from any person or company.

I. – The capital of banques populaires must be made up of at least seven subscribers. The shares subscribed may be unequal. Members may also subscribe who, without participating in the benefits of the banques populaires, are only entitled to the remuneration of their contributions. The Articles of Association govern the extent and conditions of each member’s liability for the company’s commitments. II. – The capital subscribed may not receive…

The banques populaires are subject to the disclosure requirements set out in article L. 515-10.

The Articles of Association of each Banque Populaire determine the registered office, the territorial area and the duration of the company. They determine the composition of the capital, the proportion in which each member contributes to its constitution, the method of administration of the company, the number of votes that each member has at general meetings, having regard to the number of shares he holds, and the maximum number of…

Members’ shares are always in registered form. Where they are negotiable, they are transferred with the approval of the Board of Directors. If the banque populaire is set up as a société à capital variable (variable-capital company), the Articles of Association specify the conditions under which member-policyholders may withdraw from the company, have their shares redeemed and be released from their commitments.

The members of a banque populaire may not, under any circumstances, at any time and in any form whatsoever, receive in repayment of their contribution a sum in excess of the paid-up portion of the shares they hold. In particular, the reserves and provisions constituted by the company may not be distributed among its members.

When, after repayment of the company’s debts, including advances of any kind granted by the federal bank, liquidation costs and the paid-up portion of the shares, the dissolution or liquidation of a banques populaires shows a surplus of assets, the amount of this surplus is paid into the collective guarantee fund instituted by article L. 512-16. However, the central body of the caisses d’épargne et des banques populaires may allocate…

The provisions of article L. 512-8 are applicable, after repayment of advances of any kind received from the central body of the caisses d’épargne et des banques populaires, to the surplus assets of a company which has lost, for whatever reason, its status as a banques populaires. In the absence of an amicable agreement, the amount of this surplus is determined by an expert chosen by the company’s Extraordinary General…