French Commercial code
In forceCompanies limited by shares belonging to the public sector, cooperative companies constituted in the form of a public limited company or a limited liability company, public limited companies for low-cost housing mentioned in the article L. 422-2 du code de la construction et de l'habitation et les sociétés de coordination au sens de l'article L. 423-1-1 of the same code may issue non-voting securities. These securities are redeemable only in the event of liquidation of the company or, at its initiative, on expiry of a period that may not be less than seven years and under the conditions set out in the issue contract.
Their remuneration comprises a fixed part and a variable part calculated by reference to factors relating to the company's activity or results and based on the nominal value of the share. A decree in the Conseil d'Etat sets the conditions under which the basis for the variable part of the remuneration is capped.
Participatory securities are negotiable.
For the application of the Article 26 of law no. 78-741 of 13 July 1978 relating to the orientation of savings towards the financing of companies, equity loans are only repaid after all other preferential or unsecured creditors, excluding the owners of equity securities, have been paid in full.
