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

Company Law (en cours)

In joint stock companies, the legislator allows the creation of non-voting shares. Indeed, at the time of the company's formation or during its existence, preference shares may be created, with or without voting rights, accompanied by special rights of any kind, either temporary or permanent . These advantages may consist of the allocation of a higher share of dividends, or a priority right on dis …

Preference shares and non-voting preferred shares

GERMAIN, Preference shares, French Company Law 2004, 597; LE CANNU, Ordinance No 2004-604 of 24 June 2004 and preference shares, RTD com. 2004, 533; MAGNIER, Preference shares: who benefits from the preference?, D. 2004, chron. 2559; MASSART, Preference shares and the issue of voting rights, Dr. et patr. 2004, No 130; VIANDIER, Preference shares, JCP E 2004, No 1440; KADDOUCH, Voting rights attached to preference shares, French Company Law August 2005, 37; LE NABASQUE, GAILLARD, KADDOUCH, PORTIER, SOLLE, Preference shares, Actes prat. ing. soc. May-June 2006, 2; MERCADAL, What to do with preference shares?, RJDA 2006, 671; BARET and ENDREO, Preference shares in listed companies: from disappointment to hope, Act. prat. ing. soc. 2008, No 102, 16; BOMPOINT and TORCK, Preference shares: reform avenues, Ibid., 24; MARTIN, Reflection avenues for a reform of preference shares, JCP E 2010, No 1821; MORTIER and de VENDEUIL, Pacte Law: the reform of preference shares, JCP E 2019, No 1320.

In joint stock companies, the legislator allows the creation of non-voting shares. Indeed, at the time of the company's formation or during its existence, preference shares may be created, with or without voting rights, accompanied by special rights of any kind, either temporary or permanent . These advantages may consist of the allocation of a higher share of dividends, or a priority right on distributions , or a preferential subscription right during future capital increases. The voting right may be adjusted for a fixed or determinable period; it may be suspended for a fixed or determinable period or eliminated . It may also be reserved for certain types of resolutions. Non-voting preference shares may not represent more than half of the share capital, and in companies whose shares are admitted to trading on a regulated market, more than a quarter of the share capital .

It is also possible to create preferred dividend shares without voting rights under the conditions provided in Articles L. 228-35-3 to L. 228-35-11, subject to the provisions of Articles L. 225-122 to L. 225-126. Similarly, in joint stock companies, the statutes may limit the number of votes each shareholder has in meetings, provided that this limitation is imposed on all shares, without distinction of category, other than preferred dividend shares without voting rights .

Commercial Code, Art. L. 228-11, para. 1.

Commercial Code, Art. L. 228-11, para. 2.

Commercial Code, Art. L. 228-11, para. 3.

Company Law (en cours)

181. Preference shares and non-voting preferred shares(1)

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Les notions juridiques connexes

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Les notions juridiques connexes

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