Section 1: General provisions

All holdings by a municipality in the capital of a commercial company or any other profit-making body whose purpose is not to operate municipal services or activities of general interest under the conditions laid down in Article L. 2253-2. By way of derogation from the first paragraph of this article, communes and their groupings may, by deliberation of their deliberative bodies, participate in the capital of a société coopérative d’intérêt…

Municipalities and their groupings may, by deliberation of their deliberative bodies, acquire or receive shares in local semi-public companies meeting the conditions set by articles L. 1521-1 and L. 1522-1. They may, under the same conditions, hold bonds of companies responsible for operating communal public services of an industrial and commercial nature.

The securities mentioned in article L. 2253-2 are held in registered form or represented by registered certificates.

Securities allocated to guarantee the management of the board of directors are inalienable. The disposal of the other securities mentioned in article L. 2253-2 may only take place by virtue of a deliberation by the municipal council.

Where, in a public limited company, a municipality is a member or chairman of the board of directors, a member of the management board or a member or chairman of the supervisory board, the civil liability arising from the exercise of the mandate of the representatives of the municipality is incumbent on the municipality and not on those representatives.

A decree in the Council of State determines the conditions for applying the provisions of articles L. 2253-2 à L. 2253-5.