French General Code of Local Authorities
In forceThe deliberative assemblies of communes, départements, regions and their groupings may, for the purpose of creating local semi-public companies mentioned in Article L. 1521-1, acquire shares or receive, as a fee, contribution shares, issued by these companies.
Shareholdings are subject to the following conditions:
1° The company takes the form of a public limited company governed by Book II of the French Commercial Code, subject to the provisions of this title;
2° The local authorities and their groupings hold, individually or jointly, more than half of the capital of these companies and the votes in the deliberative bodies;
3° The achievement of the object of these companies contributes to the exercise of at least one competence of each of the local authorities and each of the groupings of local authorities that are shareholders.
Subject, in the case of States that are not members of the European Union, to the conclusion of a prior agreement between France and the States concerned, foreign territorial authorities and their groupings may participate in the capital of local semi-public companies whose corporate purpose complies with Article L. 1521-1.
They may not, however, individually or together, hold more than half of the capital and votes in the decision-making bodies held by all the territorial authorities and their groupings.
