French Labour Code
In forceThe sums collected by a company savings plan may be allocated to the acquisition of :
1° Securities issued by open-ended investment companies governed by articles L. 214-7 to L. 214-7-4 and L. 214-24-29 to L. 214-24-33 of the French Monetary and Financial Code;
2° Units in unit trusts or securities issued by open-ended investment companies governed by articles L. 214-164 and L. 214-165 of the French Monetary and Financial Code;
3° Shares issued by companies referred to in paragraph II of article 83 bis andarticle 220 quater A of the General Tax Code;
4° Shares issued by companies created under the conditions set out inarticle 220 nonies of the General Tax Code.
The assets of the mutual funds may also comprise either exclusively transferable securities issued by the company or by a company in the same group within the meaning of articles L. 3344-1 and L. 3344-2, or diversified transferable securities issued by a legal entity having its registered office in a State party to the Agreement on the European Economic Area, which may or may not include securities issued by the company, including capital shares or securities issued by companies governed by law no. 47-1775 of 10 September 1947 on the status of cooperation, without prejudice to any specific provisions governing the subscription of such shares or securities by employees.
When all or part of the savings collected by the plan are to be used to acquire transferable securities issued by the company or by a company in the same group within the meaning of articles L. 3344-1 and L. 3344-2, the establishment of a mutual fund is not mandatory for the management of this investment.
The company savings plan regulations may stipulate that the mutual funds governed by article L. 214-164 of the French Monetary and Financial Code which may receive sums paid into the plan have a joint supervisory board. It may also determine the composition of the supervisory boards of the mutual funds governed by articles L. 214-164 and L. 214-165 of the same code. In such cases, the provisions of these articles shall apply. The regulations specify the procedures for appointing these boards.
A company whose securities are not admitted to trading on a regulated market and which has offered its securities to members of its company savings plan without determining the sale price in accordance with the legal provisions relating to the valuation of its securities does not benefit, in respect of this transaction, from the tax and social security exemptions provided for in articles L. 3332-22 and L. 3332-27.
