All of French Company Law: ordinary law of companies and specific regime for different types of companies

Company Law (en cours)

Pursuant to Article L. 621-13 of the Monetary and Financial Code, the president of the Judicial Court may, upon a reasoned request from the president or the secretary-general of the Financial Markets Authority, order the sequestration, wherever they may be, of funds, securities, titles, or rights belonging to the persons implicated by it, as well as any assets held by an alternative investment fun …

Principle

Pursuant to Article L. 621-13 of the Monetary and Financial Code, the president of the Judicial Court may, upon a reasoned request from the president or the secretary-general of the Financial Markets Authority, order the sequestration, wherever they may be, of funds, securities, titles, or rights belonging to the persons implicated by it, as well as any assets held by an alternative investment fund. The president rules by order upon request, with any interested party having the right to refer the matter to him. He may also order a temporary prohibition of professional activity under the same conditions.

The president of the Judicial Court ruling in summary proceedings, upon a reasoned request from the president or the secretary general of the Financial Markets Authority, may also order that a person involved be required to deposit a sum of money. He sets the amount to be deposited, the deadline for the deposit, and its allocation. In the event of the indictment of the depositor, the investigating judge seized rules to release, in whole or in part, the deposit or to maintain or increase it by a decision rendered pursuant to Article 138, para. 11 of the Code of Criminal Procedure.

The Financial Markets Authority may require the temporary suspension of the redemption of shares or units or the issuance of new shares or units of a collective investment scheme when exceptional circumstances demand it and if the interest of the unit holders, shareholders, or the public so requires. It may also require the termination of the capping or suspension of redemptions of shares or units, or temporarily limit the use of such cappings or suspensions by one or more collective investment schemes, if the interest of the unit holders, shareholders, or the public so requires .

The Financial Markets Authority may also require the temporary suspension of the redemption of shares or units or the issuance of new shares or units of an AIF when exceptional circumstances demand it and if the interest of the unit holders, shareholders, or the public so requires. It may also require the termination of the capping or suspension of redemptions of shares or units of an AIF, and temporarily limit the use of such cappings or suspensions, if the interest of the unit holders, shareholders, or the public so requires .

The chairman or the secretary general of the Financial Markets Authority may order the suspension or dismissal of a person mentioned in Article L. 421-7 if this person no longer meets the conditions set forth in that article for the performance of their duties, or to put an end to violations by this person of the applicable regulations in conditions likely to impair the proper functioning of a market undertaking . Also, the chairman of the Financial Markets Authority or the representative he appoints may order the suspension or dismissal of a person mentioned in I of Article L. 533-26 to put an end to violations of the applicable regulations in conditions likely to impair the interests of clients or the proper functioning of an investment undertaking .

The Financial Markets Authority may make a public statement mentioning any person responsible for a breach of European regulations, laws, regulations, or professional rules and the nature of the breach . In accordance with Article L. 621-14, in cases of breaches mentioned in para. II of Article L. 621-15, the board of the Financial Markets Authority may make public a statement specifying the identity of the natural or legal person involved, as well as the nature of the breach. The board may, after allowing the person concerned to present their explanations, order that the breaches of obligations resulting from European regulations, legislative or regulatory provisions, or professional rules aimed at protecting investors against insider trading, market manipulation, and unlawful disclosure of privileged information, or any other breach likely to harm investor protection, the proper functioning of markets, or any other breach of obligations related to combating money laundering and terrorist financing, be terminated in France and abroad. The board has the same powers against breaches of obligations resulting from European regulations, legislative or regulatory provisions aimed at protecting investors and the market against insider trading, market manipulation, and unlawful disclosure of privileged information committed on French territory and concerning financial instruments, units mentioned in Article L. 229-7 of the Environmental Code, or assets mentioned in para. II of Article L. 421-1 admitted to trading on a regulated market of another Member State of the European Union or party to the agreement on the European Economic Area or for which an application for admission to trading on such a market has been submitted. The president of the Financial Markets Authority may request in court that the person responsible for the identified practice be ordered to comply with European regulations, legislative or regulatory provisions, to cease the irregularity, or to eliminate its effects. The request is brought before the president of the Judicial Court of Paris, who rules in summary proceedings. The latter may take, even ex officio, any protective measure and impose a penalty payment for the execution of his order, payable to the Treasury. In the event of criminal proceedings, the penalty payment, if imposed, is only settled after the decision on the public action has become final.

Company Law (en cours)

165. Principle

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Les notions juridiques connexes

165. Principle

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Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise