I -A group works council is set up within the group formed by a dominant undertaking, whose registered office is located on French territory, and the undertakings which it controls under the conditions defined in article L. 233-1, in I and II of article L. 233-3 and inarticle L. 233-16 of the French Commercial Code.
II – For the purposes of setting up a Group Works Council, an undertaking exercising a dominant influence over another undertaking in which it holds at least 10% of the capital is also considered to be a dominant undertaking, where the permanence and importance of the relations between these undertakings establish that both belong to the same economic group.
The existence of a dominant influence is presumed to be established, without prejudice to proof to the contrary, where an undertaking, directly or indirectly :
-can appoint more than half of the members of the administrative, management or supervisory bodies of another undertaking ;
-has a majority of the votes attaching to the shares issued by another undertaking; or
-or holds the majority of the subscribed capital of another undertaking.
Where several undertakings meet one or more of the above criteria in relation to a single controlled undertaking, the undertaking which can appoint more than half of the members of the management, administrative or supervisory bodies of the controlled undertaking is deemed to be the controlling undertaking, without prejudice to proof that another undertaking may exercise a dominant influence.