Paragraph 1: Common provisions.

Articles in this section · 3

R214-208R214-209R214-210

Article R214-208

French Monetary and Financial CodeIn force
Ask for lawyer reviewed or certified translation

Updated 6 Nov 2023

Notwithstanding I and II of article R. 214-32-29, company mutual funds and employee shareholding open-ended investment companies may hold, without limitation, securities issued by the company or by a company affiliated to it under the conditions set out in articles L. 3344-1 and L. 3344-2 of the Labour Code.

In the case of shares in limited liability companies issued by a company governed by law no. 47-1775 of 10 September 1947 on the status of cooperation and shares in mutual or cooperative banks, without prejudice to the specific rules applicable to these entities, the 10% limit provided for in II of article R. 214-32-29 is raised to 50% provided that the articles of association of this company do not include any restriction on the immediate redemption of shares held by the fund.

Company mutual funds and employee shareholding open-ended investment companies may not hold more than 10% of the financial instruments carrying voting rights of any single issuer.

By way of derogation from II of article R. 214-32-35 and the previous paragraph, company mutual funds and employee shareholding open-ended investment companies may hold more than 10% of the securities issued by the company or by any company affiliated to it under the conditions set out in articles L. 3344-1 and L. 3344-2 of the Labour Code.

The cumulative amount of liquid assets recorded at the time of each net asset value calculation for the current year may not exceed one-fifth of the sum of net assets for the same period. The AMF Board may decide to make exceptional exceptions to this rule.

When the proportion of the assets of a fonds commun de placement d'entreprise (company mutual fund) or a société d'investissement à capital variable d'actionnariat salarié (open-ended employee shareholding investment company) invested in securities of the company or any of its affiliates falls below one-third, the management company of the fund or the open-ended investment company shall, in their securities purchase and sale transactions, give priority to rectifying this situation as quickly as possible, while taking into account the interests of unit or share holders.

Mariela Petrova

Need help applying this article to your situation?

A registered French Lawyer explains what applies to your business — in English, fixed fee.

within 48h

Fixed Fee

Talk to a lawyer
Previous articleArticle R214-215Next articleArticle R214-209
Common Questions

Working with a corporate lawyer in France — Q&A

Any time a strategic decision changes how the company is owned, governed or contractually bound — incorporation, fundraising, M&A, restructuring, shareholder agreements, or major commercial contracts. Earlier engagement always costs less than later remediation.

A notary (notaire) is a public officer who authenticates specific deeds (mainly real-estate transfers and certain family-law acts). A corporate lawyer (avocat) advises on strategy, negotiates and drafts company documents, and represents you in disputes. The two roles complement rather than overlap.

Yes — most of our clients are foreign suppliers, investors or holding entities. We bridge the gap between French law and your home jurisdiction's expectations and deliver everything bilingually.

The SAS (Société par Actions Simplifiée) is the default choice for most international structures: flexible governance, single shareholder allowed, no minimum capital, and works cleanly with foreign holding entities. We assess SARL, SA, SCI on the merits when the situation calls for it.

Yes — communications with a French avocat are protected by the secret professionnel (Article 66-5 of the Law of 31 December 1971). This protection is broader than the common-law attorney-client privilege and applies to written and oral exchanges.

We work on fixed fees for clearly scoped engagements (incorporation, contract drafting, audits) and on monthly retainers for ongoing advisory. Hourly billing is the exception, not the default. You always know the cost before work starts.

Typical timeline is 2–3 weeks from KYC kick-off to RCS registration, assuming standard documentation. Holding-company structures, foreign-shareholder identification or in-kind contributions can extend this — we flag the gating items at the first meeting.

Absolutely. We routinely coordinate with your in-house counsel, expert-comptable or notaire — pragmatic collaboration is the norm, not the exception. We send them everything they need to do their part without duplicating work.

Mariela Petrova

Mariela Petrova

Avocate au Barreau de Paris

Toque #C2396

15+ Years In Corporate Practice

English · French · Russian

Ready When You Are

Talk To A Corporate
Lawyer In France.

A 20–30 minute call, in English, to scope the engagement. No obligation, no preliminary fee. You will leave the call with a clear view of what the work will cover and what it will cost.

Talk To A Corporate Lawyer+33 1 84 88 31 00
First EngagementFixed Fee

Talk to a French lawyer.

Reply within 24 hours.

Communications protected by professional secrecy — secret professionnel de l'avocat, Article 66-5 of the Law of 31 December 1971.

Continue Reading

Related corporate services in France

01 / Setup

Setting up a French company

Choose between SAS, SARL, SA or SCI — and structure your first French entity around how you actually plan to operate.

Read More
02 / Operating

French commercial contracts

Distribution, agency, supply, services and IP licences — drafted around the protections French law actually gives.

Read More
03 / Disputes

Business disputes & litigation

Shareholder conflicts, commercial breaches and pre-litigation strategy — handled by the same team that knows the file.

Read More