French General Code of Local Authorities
In forceTerritorial authorities and their groupings may, within the limits of their powers and in compliance with France's international commitments, join a public body governed by foreign law or participate in the capital of a legal entity governed by foreign law in which at least one territorial authority or grouping of territorial authorities of a Member State of the European Union or a Member State of the Council of Europe is a member or participant.
This membership or participation is authorised by order of the State representative in the region. It is the subject of an agreement with all the members joining the public body in question or participating in the capital of the legal entity in question. This agreement sets out the duration, terms and conditions, and financial and control arrangements for this membership or shareholding. The total participation in the capital or costs of a single legal entity governed by foreign law by French territorial authorities and their groupings may not exceed 50% of this capital or these costs.
The agreement provided for in the previous paragraph comes into force as soon as it is transmitted to the State representative under the conditions set out in articles L. 2131-1, L. 2131-2, L. 3131-1, L. 3131-2, L. 4141-1 and L. 4141-2. The articles L. 2131-6, L. 3132-1and L. 4142-1 are applicable to this agreement.
The accounts, certified by a statutory auditor, as well as the activity report of legal entities governed by foreign law in whose capital local authorities and their groupings participate, are attached each year to the budget of these public entities. The same applies to the accounts and activity report of public bodies governed by foreign law to which territorial authorities and their groupings belong. This appendix specifies the amount of the participation of each of these public entities.
The budget of the territorial authorities and their groupings is annexed to the budget of these public entities each year.
