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

Company Law (en cours)

In accordance with Article 1844-1, para. 1 of the Civil Code, each partner's share in the profits is determined in proportion to their share in the corporate capital. The share of the partner who has only contributed their services is equal to that of the partner who has contributed the least, unless otherwise stipulated. Para. 2 of the same article deems unwritten any provisions that allocate the …

Right to profit

In accordance with Article 1844-1, para. 1 of the Civil Code, each partner's share in the profits is determined in proportion to their share in the corporate capital. The share of the partner who has only contributed their services is equal to that of the partner who has contributed the least, unless otherwise stipulated. Para. 2 of the same article deems unwritten any provisions that allocate the entire profit generated by the company to one partner or exempt them from all losses, as well as those that completely exclude a partner from profit or place the entire burden of losses on them.

After approval of the annual accounts and acknowledgment of the existence of distributable sums, the meeting of partners determines the portion allocated to partners in the form of dividends . The distributable profit is obtained after the necessary depreciation and provisions have been made, deducting, if applicable, previous losses and amounts to be reserved according to the law or the statutes, and taking into account the retained earnings carried forward . Unlike limited liability companies and joint-stock companies, the SNC, and by extension, the SCS, are not required to constitute a legal reserve . Partners may receive interim dividends before the approval of the accounts for the fiscal year . Furthermore, the statutes cannot provide, in the absence of profit distribution, a clause stipulating a fixed or interim interest corresponding to a percentage of the nominal value of the share in favor of the partners. Any contrary clause is deemed unwritten , as it would result in a withdrawal from the company's reserves or share capital.

Pursuant to Article L. 232-13 of the Commercial Code, the general meeting sets the terms for the payment of voted dividends. Failing that, it is up to the managers to set them. The payment of dividends must take place within a maximum period of nine months after the close of the fiscal year. An extension of this period may be granted by a court decision, at the request of the managers.

Commercial Code, Art. L. 232-12, para. 1.

Commercial Code, Art. L. 232-12, para. 2.

Commercial Code, Art. L. 232-10, para. 1.

Commercial Code, Art. L. 232-15, para. 1.

Company Law (en cours)

424. Right to profit

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Les notions juridiques connexes

424. Right to profit

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise