Subsection 8: Mutual insurance companies.

The Statutory Auditors report to the General Meeting on the expenses incurred on behalf of the company by the directors and for which reimbursement has been obtained or requested by them.

The Executive Chairmen or Directors may only be reimbursed for outlays actually incurred by them on behalf of the Company, subject to justification.

Subject to the provisions of Article L. 322-2-1, mutual insurance companies may only borrow to set up : 1° If their articles of association so provide, the supplementary social fund ; 2° The guarantees they may be required to provide abroad.

Surplus income may be distributed only after the reserves prescribed by the laws and regulations in force have been set up, after any loans taken out have been repaid and after the regulatory provisions concerning the solvency margin and adjusted solvency have been satisfied. The first surplus income must be used, as a priority, for proportional reimbursements of the membership fees paid for the formation of the company. No formation…

Without prejudice to the nullities provided for in article R. 322-90, any mutual insurance company formed contrary to the provisions of articles R. 322-93, R. 322-95 to R. 322-97, R. 322-99, R. 322-101 and R. 322-105 is null and void. However, neither the company nor the members may rely on the aforementioned nullities vis-à-vis third parties acting in good faith.