French Commercial code
In forceShares are freely transferable by inheritance or in the event of the liquidation of community property between spouses and freely transferable between spouses and between ascendants and descendants.
However, the Articles of Association may stipulate that a spouse, heir, ascendant or descendant may only become a partner after having been approved under the conditions set out in
Article L. 223-14. On pain of nullity of the clause, the time limits granted to the company to decide on approval may not be longer than those provided for in article L. 223-14, and the majority required may not be greater than that provided for in that article. If approval is refused, the provisions of the third and fourth paragraphs of article L. 223-14 shall apply. If none of the solutions provided for in these paragraphs is implemented within the time limits set, approval is deemed to have been granted.
The Articles of Association may stipulate that in the event of the death of one of the members, the company will continue with his heir or only with the surviving members. Where the company continues with the surviving partners only, or where approval has been refused to the heir, the heir is entitled to the value of the shareholder's rights.
It may also be stipulated that the company will continue, either with the surviving spouse, or with one or more of the heirs, or with any other person designated by the Articles of Association or, if they so authorise, by testamentary provisions.
In the cases provided for in this article, the value of the corporate rights is determined on the day of death in accordance with
Article 1843-4of the Civil Code.
