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

Company Law (en cours)

Commercial by virtue of its form , the société en nom collectif (SNC)  is characterized by the strong intuitus personæ that exists between its partners  and the fact that they all have the status of merchant and are jointly and severally liable for the company's debts.  The extent of this liability implies the existence of trust among them and the necessity to know each other. Furthermore, the tra …

Characteristics

Commercial by virtue of its form , the société en nom collectif (SNC)  is characterized by the strong intuitus personæ that exists between its partners  and the fact that they all have the status of merchant and are jointly and severally liable for the company's debts.  The extent of this liability implies the existence of trust among them and the necessity to know each other. Furthermore, the transfer of ownership interests can only occur with the consent of all partners . Consequently, the SNC is a closed company.

The SNC is considered the ordinary law commercial company. Indeed, the Court of Cassation has held that when a company does not meet the conditions that would classify it as another form of company, it must be classified as an SNC if the partners have not limited their participation in the liabilities or specified the amount they commit to provide and up to which they intend to be liable.  Moreover, the provisions relating to general partnerships are applicable to limited partnerships, subject to the rules provided in the chapter concerning them  and similarly for partnerships limited by shares, insofar as these provisions are compatible with the specific rules provided in the chapter reserved for them .

Finally, the regime of the SNC presents few constraints and therefore leaves significant room for the principle of contractual freedom.

The initials “SNC” are authorized by Art. R. 123-238 Commercial Code.

CA Versailles, 30 September 1999, BJS 2000, 4, 426, regarding an early dissolution of the SNC pronounced due to a disagreement among the partners.

Commercial Code, Art. L. 221-13, para. 1.

Cass. req., (petitions chamber) 10 August 1859, LawLex202200008997JBJ.

Commercial Code, Art. L. 226-1, para. 2, by reference.

Company Law (en cours)

329. Characteristics

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Les notions juridiques connexes

329. Characteristics

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Les décisions de justice citées dans ce paragraphe :

Sous parties

Les notions juridiques connexes

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