French Commercial code
In forceI.-Commercial companies shall draw up and publish each year, at the request of the board of directors, the management board or the manager(s), as the case may be, consolidated accounts and a report on the management of the group, where they exclusively or jointly control one or more other undertakings , under the conditions hereinafter defined.
II.-Exclusive control by a company results from:
1° Either the direct or indirect holding of the majority of voting rights in another company;
2° Or the appointment, for two successive financial years, of the majority of the members of the administrative, management or supervisory bodies of another company. The consolidating company is presumed to have made such an appointment where, during that period, it held, directly or indirectly, more than 40% of the voting rights, and no other partner or shareholder held, directly or indirectly, a fraction greater than its own;
3° Or the right to exercise a dominant influence over an undertaking by virtue of a contract or clauses in the articles of association, where permitted by the applicable law.
III.-Joint control is the sharing of control of an undertaking operated in common by a limited number of partners or shareholders, so that decisions result from their agreement.
