French Business Law - French Legislation

Article L515-4 of the French Monetary and Financial Code

November 7, 2023

Mutual guarantee companies may be set up between traders, industrialists, manufacturers, craftsmen, commercial companies and members of the liberal professions. Their purpose is to guarantee their members in respect of their professional transactions. Mutual guarantee companies may also be set up between owners of buildings or property rights. Their purpose is to guarantee their members in respect of loans taken out for home ownership or the refurbishment and repair of…

Article L515-5 of the French Monetary and Financial Code

November 7, 2023

Mutual guarantee companies are commercial companies.

Article L515-6 of the French Monetary and Financial Code

November 7, 2023

The Articles of Association determine the registered office and mode of administration of the company, the conditions necessary for the amendment of these Articles of Association and the dissolution of the company, the composition of the capital and the proportion in which each member contributes to its constitution. They regulate the extent and conditions of each member’s liability for the company’s commitments. The Articles of Association reserve the right of…

Article L515-7 of the French Monetary and Financial Code

November 7, 2023

The Articles of Association provide that the Board of Directors shall determine for each member the maximum amount of guarantees that may be granted and shall limit the period for which such guarantees are given. They expressly stipulate that the Board of Directors may refuse to grant the guarantee requested, or may grant it only subject to the guarantees it deems appropriate.

Article L515-8 of the French Monetary and Financial Code

November 7, 2023

The capital, the reserve funds and the guarantee fund are allocated to guarantee the sureties given by the company in such a way as to serve as a provision for bills, notes and commitments, in the absence of settlement. Before beginning to give any guarantees, the directors are required to state, in a declaration filed in duplicate at the clerk’s office of the judicial court of the company’s registered office,…

Article L515-9 of the French Monetary and Financial Code

November 7, 2023

The Articles of Association determine the levies and commissions charged to the company on its transactions. A reserve fund known as the “legal reserve”, equal to half the share capital, is set up in accordance with the provisions of the first paragraph of Article L. 232-10 of the French Commercial Code. Subject to the possibility of paying interest on the capital actually paid in, as determined by the Articles of…

Article L515-10 of the French Monetary and Financial Code

November 7, 2023

The conditions of publication prescribed for ordinary commercial companies are replaced, in respect of mutual guarantee companies, by the following provisions: 1. Prior to any transaction, three copies of the articles of association, together with a complete list of the directors or managers and the members, indicating their name, profession, domicile and the amount of each subscription, shall be filed with the clerk of the court in whose jurisdiction the…

Article L515-11 of the French Monetary and Financial Code

November 7, 2023

The directors of a mutual guarantee company are personally liable for any loss resulting from a breach of the articles of association or of the provisions of this section.

Article L515-12 of the French Monetary and Financial Code

November 7, 2023

The detailed rules for the application of this section shall be laid down by decree in the Conseil d’Etat.

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Section 3: Mutual guarantee companies

Article L515-4 of the French Monetary and Financial Code

Article L515-5 of the French Monetary and Financial Code

Article L515-6 of the French Monetary and Financial Code

Article L515-7 of the French Monetary and Financial Code

Article L515-8 of the French Monetary and Financial Code

Article L515-9 of the French Monetary and Financial Code

Article L515-10 of the French Monetary and Financial Code

Article L515-11 of the French Monetary and Financial Code

Article L515-12 of the French Monetary and Financial Code

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Section 3: Mutual guarantee companies

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Our attorneys will contact you promptly within 24h. All information exchanged through this website will be communicated to attorneys only, and will remain confidential.

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