French Monetary and Financial Code
In forceI. - A parent undertaking is an undertaking which has exclusive control, within the meaning of article L. 233-16 of the Commercial Code, over one or more other undertakings or which exercises a dominant influence over them by virtue of the existence of substantial and lasting links of solidarity resulting from financial commitments, shared management or shared services.
A subsidiary of a credit institution, a finance company, an investment firm, a parent undertaking of a finance company, a financial holding company, a mixed financial holding company, an investment holding company, a mixed holding company or a mixed parent undertaking of a finance company is an undertaking over which exclusive control is exercised within the meaning of Article L. 233-16 of the French Commercial Code. 233-16 of the French Commercial Code, or a dominant influence by virtue of the existence of significant and lasting links of solidarity resulting from financial commitments, shared management or shared services. A subsidiary of a subsidiary is considered to be a subsidiary of the parent undertaking which is at the head of these undertakings.
II. - The holding, directly or indirectly, of at least 20% of the voting rights or capital of an undertaking, or a group of rights in the capital of an undertaking which, by creating a lasting link with the undertaking, is intended to contribute to the activity of the company, constitutes a holding.
III. - A group is a set of undertakings consisting of a parent undertaking, its subsidiaries and the entities in which the parent undertaking or its subsidiaries have holdings, as well as entities which are linked in such a way that the majority of their administrative, management or supervisory bodies are made up of the same persons or that they are placed under a single management by virtue of a contract or clauses in the articles of association. Institutions and finance companies affiliated to a network and the central body within the meaning of Article L. 511-31 are considered to be part of the same group for the purposes of this Code. The same applies to entities belonging to cooperative groups governed by similar provisions in the legislation applicable to them.
IV. - The expression: "financial group" refers to the whole, not constituting a financial conglomerate, formed by the direct or indirect subsidiaries of a credit institution, an investment firm, or a financial holding company, and by the financial undertakings over which the parent undertaking exercises joint control within the meaning of article L. 233-16 of the Commercial Code.
The financial undertakings mentioned in the previous paragraph are defined by regulation.
V. - The term "mixed group" refers to the direct or indirect subsidiaries of a mixed holding company.
