Chapter I: General provisions

I.-If a foreign investment has been made without prior authorisation, the Minister responsible for the economy shall take one or more of the following measures:

1° Injunction to the investor to file an authorisation application;

2° Injunction to the investor to re-establish the previous situation at its own expense;

3° Injunction to the investor to modify the investment.

The injunctions mentioned in 1° to 3° may be accompanied by a penalty payment. The injunction shall specify the amount and effective date of the penalty payment. A decree in the Conseil d'Etat sets the maximum daily amount of the penalty payment and the procedures for settling it in the event of total or partial non-performance or late performance.

The Minister for the Economy may also, if the protection of the national interests mentioned in I of article L. 151-3 is compromised or likely to be compromised, take any precautionary measures that appear necessary. To this end, it may

a) Suspend the voting rights attached to the fraction of the shares or corporate units which the investor should have been required to hold with prior authorisation;

b) Prohibit or restrict the distribution of dividends or remuneration attached to the shares or corporate units which the investor should have been required to hold with prior authorisation;

c) Temporarily suspend, restrict or prohibit the free disposal of all or part of the assets linked to the activities defined in I above;

d) Appoint an agent to oversee the protection of the interests of the investors within the company carrying out the activity referred to in I of Article L. 151-3, for the protection of national interests. This representative may oppose any decision taken by the company's governing bodies that could undermine these interests. Their remuneration is set by the Minister for the Economy; it is paid, along with the expenses incurred by the representative, by the company to which they are appointed.

II - If the Minister responsible for the economy considers that the conditions attached to his authorisation under II of article L. 151-3 have been breached, he will take one or more of the following measures:

1° Withdrawal of the authorisation. Unless it re-establishes the situation prior to the investment, the foreign investor shall reapply for the investment authorisation provided for in the same article L. 151-3;

2° An injunction to the investor who was responsible for the obligation that was not fulfilled to comply with the conditions set out in the authorisation within a timeframe that it determines;

3° An injunction to the investor who was responsible for the obligation that was not fulfilled to carry out, within a timeframe that it determines, requirements in substitution for the obligation that was not fulfilled, including the restoration of the situation prior to the failure to comply with this obligation or the transfer of all or part of the activities defined in I of the said Article L. 151-3.

These injunctions may be accompanied by a penalty payment in accordance with the procedures set out in I of this article.

The Minister for the Economy may also take the necessary precautionary measures, under the conditions and according to the procedures set out in the same I.

III -Decisions or injunctions taken on the basis of this article may only be made after the investor has been given formal notice to submit observations within a period of fifteen days, except in cases of urgency, exceptional circumstances or imminent threat to public order, public security or national defence.

IV -These decisions may be appealed in full.

V.-A decree of the Conseil d'Etat will determine the application of this article.