Section 5: Management of the special reserve.

When the parties have chosen to use the special profit-sharing reserve under the conditions provided for in article L. 3323-2, the companies make the corresponding payments before the first day of the sixth month following the end of the financial year in respect of which the profit-sharing is allocated. After this deadline, the companies shall add to the payments provided for in the first paragraph interest on arrears equal to…

When the special profit-sharing reserve is used to acquire securities issued by open-ended investment companies, at least half of the portfolio of these companies is made up of securities issued by companies whose registered office is located in a Member State of the European Community or another State party to the Agreement on the European Economic Area. These companies register in the name of each beneficiary the number of shares…

When the profit-sharing agreement provides that the sums due to employees will be used according to one or more of the methods mentioned in Article L. 3323-2 and allows employees to choose individually the method of management of the sums allocated to them, it sets out the methods of exercising this choice and specifies the fate of the rights of employees who have not expressly opted for one of the…

Where the profit-sharing agreement offers several investment vehicles, it specifies the terms and conditions under which employees may change the allocation of their savings. However, the agreement may provide for restrictions on the possibility of changing the initial investment choice in the cases it defines. It then specifies the change or changes that may be made when the employee leaves the company. Without prejudice to the provisions of the fifth…

When profit-sharing rights are allocated, during or at the end of the blocking period, to a company savings plan, the period of unavailability accrued for these sums at the time of allocation is deducted from the blocking period provided for by the company savings plan.

The profit-sharing agreement providing for individual choice between immediate payment or reinvestment of interest specifies the system applicable in the absence of an option exercised by the employee.

In the absence of any stipulation in the agreements, income from employees’ debt-claim rights is paid annually to the beneficiaries.

When interest corresponding to sums paid into blocked current accounts is reinvested, it is capitalised annually.

The sums allocated by way of profit-sharing and assigned to a company investment fund are remunerated for all employees at an identical rate. This rate may not be lower than the rate mentioned inarticle 14 of law no. 47-1775 of 10 September 1947 on the status of cooperation.

Mutual funds set up under a profit-sharing agreement are governed by the rules applicable to company mutual funds mentioned in articles L. 214-164 and L. 214-165 of the French Monetary and Financial Code. In addition, the fund rules may provide for the fund to receive, at the request of any employee who has a claim on a company in respect of employee profit-sharing, pursuant to 2° of article L. 3323-2,…