jeu., 18 sept. 2014 16:43:00 +0000

Recent regulatory modifications pertaining to public holding companies

Ordinance no. 2014-948 of 20 August 2014 pertaining to governance and operations on capital by public holdings companies was published on the JORF of 23 August 2014. It "is applicable to commercial companies in which the State or its public bodies hold, alone or jointly, directly or indirectly, holdings in capital".

Two sections are included in this ordinance, the first concerning rules of governance for public holding companies and the second on capital transactions. Provisions also imply removal of a certain number of declarations and administrative approvals which are no longer necessary, costly or hinder the active management of the State.

Within the first section, new provisions are dealt with concerning boards of directors, supervisory boards, presidency and general management. Notably, the ordinance brings an end to special rules concerning the size of boards and term of mandates, it also clarifies the role of appointed directors or those proposed by the State by distinguishing the role of State shareholder of its other State client functions or regulatory for instance.

Within the second section, authorisation, control of estate and capital transactions are dealt with. A protective framework for the State interests in estate is implemented,offering it the capacity to dynamically manage its role as shareholder. There is also a framework of support for acquisitions of holdings, as well as the control of transfers.

Decree n°2014-949 of 20 August 2014 sets forth the terms and conditions for application of said ordinance concerning primarily the appointment of certain management bodies.