French Monetary and Financial Code
In forceExchanges and sales of woodlands and forests, interest shares in forestry groupings or shares in companies whose sole purpose is to hold woodlands and forests by forest savings companies must comply with the following conditions:
1° For exchange transactions, the forest savings company has owned the forest or company share transferred for at least three years at the date of the exchange. This condition is not required for the exchange of management units with a surface area of less than 10 hectares. Exchanges may only involve assets of comparable value, with, where applicable, a balancing payment, payable by or to the company, representing a maximum of 30% of the value of the asset exchanged;
2° For sale transactions, the forest savings company must have owned the forest or the share in the company being sold for at least six years at the date of sale. This condition is not required for the transfer of management units of less than 10 hectares.
In the event of a sale, the forestry savings company submits an amendment to the simple management plan to which its assets are subject in order to remove the parcels sold and to allocate the proceeds of the sale within three years to the purchase of woods and forests, interest shares in forestry groupings or shares in companies whose sole purpose is to hold woods and forests, or to work to improve the forestry assets held.
Subject to the provisions of III of article R. 214-162, the cumulative market value of assets and company shares exchanged or sold during a twelve-month financial year shall not exceed 15% of the value of all the assets of the forest savings company shown in the balance sheet for the last financial year. If no disposals are made during a financial year, the limit applicable to maturities and disposals made during the following financial year is increased to 30%.
