Title II: Profit-sharing

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,…

Where no profit-sharing agreement has been signed, the sums held in the current account bear interest from the first day of the sixth month following the end of the financial year in respect of which the profit-sharing is allocated.

When an employee who holds rights to the special profit-sharing reserve leaves the company without exercising his rights to unlocking or before the company has been able to liquidate all the rights he holds on the date of his departure, the employer: 1° Provides him with the summary statement provided for in Article L. 3341-7; 2° Request the address to which notices of dividend payments and interest due dates, redeemable…

If the beneficiary cannot be reached at the last address indicated by him/her, the sums to which he/she is entitled are held at his/her disposal by the company for a period of one year from the date of expiry of the period provided for in either article L. 3323-5 or article L. 3324-10 as applicable. Once this period has expired, these sums are remitted to the Caisse des dépôts et…

Units in mutual funds and shares in open-ended investment companies (SICAVs) acquired pursuant to 1° of article L. 3323-2 continue to be held by the organisation responsible for them, from which the interested party may claim them until the end of the periods stipulated in III of article L. 312-20 of the Monetary and Financial Code.

In the event of the employee’s death, his heirs request the liquidation of his rights. The tax regime provided for in 4 of III of article 150-0 A of the General Tax Code ceases to apply to them from the seventh month following the death.