French Monetary and Financial Code
In forceI. - The entities mentioned in 2° of II of article L. 214-28 in which venture capital mutual funds may invest are those which limit the liability of their investors to the amount of their contributions.
II. - For the purposes of calculating the numerator of the 50% quota stipulated in I of article L. 214-28, the rights representing a financial investment in the entities mentioned in I are taken into account in proportion to the direct investment of these entities in securities eligible for this same 50% quota, excluding rights in other entities of the same type.
This proportion of direct investment is calculated by reference to:
1° either the last inventory of the assets of the said entities, prior to pre-liquidation where applicable ;
2° or to the statutory or contractual commitments to invest directly in eligible securities made by the said entities insofar as the latter have not entered the pre-liquidation period mentioned in articles R. 214-40 and R. 214-41 when the fund is subscribed.
When the said entities have made a statutory or contractual commitment to the fund regarding the proportion of their assets made up of securities or rights included in the investment quota provided for in I of article L. 214-28, this proportion applies to the initial contractual subscription commitments given by the fund to the said entities, provided that these commitments are irrevocable.
In the absence of a statutory or contractual commitment by these entities, only 50% of the contractual subscription commitments given by the fund to these entities are taken into account, provided that these commitments are irrevocable.
