French Monetary and Financial Code
In forceI. - direct or indirect holdings in the companies referred to in 2° of the I of article L. 214-115 may represent up to 100% of the assets of a société civile de placement immobilier, if the following three conditions are met:
1° These companies draw up annual accounts and interim accounts at least every six months;
2° The properties and real rights held by these companies meet the conditions set out in articles R. 214-155 and R. 214-155-1 ;
3° The relationship between the société civile de placement immobilier and these companies corresponds to one of the following cases:
a) The société civile de placement immobilier directly or indirectly holds the majority of voting rights in these companies;
b) For two successive financial years, the non-trading property investment company appoints the majority of the members of the administrative, management or supervisory bodies of these companies. The société civile de placement immobilier is presumed to have made this appointment if, during this period, it directly or indirectly held more than 40% of the voting rights and no other partner or shareholder directly or indirectly held more than its share;
c) The société civile de placement immobilier has the right to exercise a dominant influence over these companies by virtue of a contract or clauses in the articles of association, where permitted by applicable law;
d) The société civile de placement immobilier exercises any of the rights or powers referred to in a to c above jointly with other sociétés civiles de placement immobilier or bodies referred to in 3° of I of Article L. 214-115 which are managed by the management company of the société civile de placement immobilier or, within the meaning of Article L. 233-3 of the French Commercial Code, by a company which it controls, by a company which controls it or by a company controlled by a company which controls it;
e) These companies undertake, under a written agreement with the non-trading property investment company, to provide the management company of the non-trading property investment company with the information it requires, particularly with a view to valuing the assets and liabilities of these companies and the debt limit referred to in Article L. 214-101.
II - Notwithstanding I, the assets of a non-trading property investment company may also include direct or indirect holdings in companies mentioned in 2° of I of article L. 214-115 which do not meet the conditions set out in 2° and 3° of this I, up to a limit of 10% of the market value of the property assets of the non-trading property investment company.
Units, shares or rights in non-trading property investment companies and bodies mentioned in 3° of I of article L. 214-115 may not represent more than 10% of the market value of the property assets of the non-trading property investment company.
