French General Code of Local Authorities
In forceI. - Within the scope of its powers other than the exercise of missions of sovereignty, a territorial authority or a group of territorial authorities may create, with at least one economic operator shareholder, selected after a competitive tendering process under the conditions defined in Article L. 1541-2, a single-operations semi-public company.
The single-operations semi-public company is set up, for a limited period, on an exclusive basis with a view to concluding and performing a contract with the territorial authority or group of territorial authorities, the sole purpose of which is:
1° Either the carrying out of a construction, housing development or planning operation;
2° Or the management of a public service that may include the construction of works or the acquisition of assets required for the service;
3° Or any other operation of general interest falling within the remit of the territorial authority or grouping of territorial authorities.
This single purpose may not be modified throughout the term of the contract.
The contract may include the conclusion, between the single-operation semi-public company and the territorial authority or grouping of territorial authorities, of an administrative emphyteutic lease necessary to achieve its purpose.
A semi-public company, formed on the basis of Article L. 5721-2, including a public establishment of the State or a local public establishment with a public river domain, may create a single-purpose semi-public company under the conditions provided for local authorities or their groupings in this Title.
II. - Subject to this Title, the single-purpose semi-public company takes the form of a public limited company governed by Book II of the Commercial Code and by Title II of this Book. It may not acquire holdings in commercial companies.
III. - The Articles of Association of the société d'économie mixte à opération unique determine the number of seats on the Board of Directors or Supervisory Board held by each shareholder. They are allocated in proportion to the capital held, this number being rounded up, where appropriate.
The chairman of the board of directors or supervisory board is a representative of the local authority or group of local authorities.
The local authority or group of local authorities holds between 34% and 85% of the company's capital and at least 34% of the votes in the deliberative bodies. The share of capital held by all economic operator shareholders may not be less than 15%.
IV. - A single-operations semi-public company is automatically dissolved when the contract with the local authority or group of local authorities comes to an end, or as soon as the purpose of the contract has been fulfilled or has expired.
