Subsection 2: Central bodies

The central bodies represent the credit institutions and finance companies affiliated to them in their dealings with the Banque de France and the Autorité de contrôle prudentiel et de résolution.

They are responsible for ensuring the cohesion of their network and the smooth operation of the institutions and companies affiliated to them. To this end, they take all necessary measures, in particular to guarantee the liquidity and solvency of each of these institutions and companies and of the network as a whole. They may also decide to prohibit or limit the distribution of dividends to shareholders or the remuneration of members' shares to members of the credit institutions, finance companies or investment firms affiliated to them.

The securities referred to in the last paragraph of article 19 tervicies of law no. 47-1775 of 10 September 1947 on the status of cooperation, held directly or indirectly by a central body within the meaning of article L. 511-30, are not taken into account when calculating the limit of 50% of the capital of the credit institutions affiliated to them, referred to in the aforementioned article 19 tervicies.

They ensure the application of the legislative and regulatory provisions specific to these institutions and companies and exercise administrative, technical and financial control over their organisation and management. On-site inspections by the central bodies may be extended to their direct or indirect subsidiaries, as well as to those of the institutions and companies affiliated to them.

Within the scope of these powers, they may impose the penalties provided for by the laws and regulations applicable to them.

The loss of the status of affiliated institution or company must be notified by the central body to the Autorité de contrôle prudentiel et de résolution, which decides on the authorisation of the institution or company in question.

For the application of the provisions of section 2 of Chapter V of Title II of Book II of the French Commercial Code, corporate offices held within the central body, within the meaning of Article L. 511-30 of this Code, or the credit institutions and finance companies affiliated to it must be counted as a single office. </p><p>After informing the Autorité de contrôle prudentiel et de résolution, the central bodies may, where justified by the financial situation of the institutions and companies concerned, and notwithstanding any provisions or stipulations to the contrary, decide to merge two or more legal entities affiliated to them, to sell all or part of their business and to dissolve them. The governing bodies of the legal entities concerned must first have been consulted by the central bodies. The central bodies are responsible for winding up the credit institutions and finance companies affiliated to them or for the total or partial sale of their business assets.

The central bodies notify any decision to affiliate or withdraw affiliation to the institution or company concerned and to the Autorité de contrôle prudentiel et de résolution.