French company law

Last updated

French company law is the law governing corporations incorporated in France or under French corporate law.

France Republic with mainland in Europe and numerous oversea territories

France, officially the French Republic, is a country whose territory consists of metropolitan France in Western Europe and several overseas regions and territories. The metropolitan area of France extends from the Mediterranean Sea to the English Channel and the North Sea, and from the Rhine to the Atlantic Ocean. It is bordered by Belgium, Luxembourg and Germany to the northeast, Switzerland and Italy to the east, and Andorra and Spain to the south. The overseas territories include French Guiana in South America and several islands in the Atlantic, Pacific and Indian oceans. The country's 18 integral regions span a combined area of 643,801 square kilometres (248,573 sq mi) and a total population of 67.3 million. France, a sovereign state, is a unitary semi-presidential republic with its capital in Paris, the country's largest city and main cultural and commercial centre. Other major urban areas include Lyon, Marseille, Toulouse, Bordeaux, Lille and Nice.

Contents

History

In the wake of the French Revolution in 1791, the right to free registration for all private companies was proclaimed. There was a boom in registrations, but this was followed by a bust in 1793. The law was reversed until 1796 when the principle of free incorporation was established again.

French Revolution social and political revolution in France and its colonies occurring from 1789 to 1798

The French Revolution was a period of far-reaching social and political upheaval in France and its colonies beginning in 1789. The Revolution overthrew the monarchy, established a republic, catalyzed violent periods of political turmoil, and finally culminated in a dictatorship under Napoleon who brought many of its principles to areas he conquered in Western Europe and beyond. Inspired by liberal and radical ideas, the Revolution profoundly altered the course of modern history, triggering the global decline of absolute monarchies while replacing them with republics and liberal democracies. Through the Revolutionary Wars, it unleashed a wave of global conflicts that extended from the Caribbean to the Middle East. Historians widely regard the Revolution as one of the most important events in human history.

The law was consolidated in Napoleon's Code de commerce of 1807 using a concession system. While previously public companies with special privileges were created by a special act of the state, the Code allowed the companies to be formed according to general company law rules. Specific state permission was still required. Article 33 recognised limited liability for members. [1] The Code de commerce was applicable outside France in Baden and the Prussian Rhine province, and it came to serve as a model for all later European public company statutes. The first German public company statute was the Prussian Act of 1843, five years after the Prussian Act on railway enterprises of 1838. Under the Loi sur les Sociétés of 1867 France adopted a system for free registration of companies. [2]

Limited liability Business structure where shareholders cannot owe more than their stake in a venture

Limited liability is where a person's financial liability is limited to a fixed sum, most commonly the value of a person's investment in a company or partnership. If a company with limited liability is sued, then the claimants are suing the company, not its owners or investors. A shareholder in a limited company is not personally liable for any of the debts of the company, other than for the amount already invested in the company and for any unpaid amount on the shares in the company, if any. The same is true for the members of a limited liability partnership and the limited partners in a limited partnership. By contrast, sole proprietors and partners in general partnerships are each liable for all the debts of the business.

Baden historical region in present Germany

Baden is a historical territory in South Germany, situated along right bank of the Upper Rhine.

See also

German company law field of law that deals with companies and enterprises

German company law (Gesellschaftsrecht) is an influential legal regime for companies in Germany. The primary form of company is the public company or Aktiengesellschaft (AG). A private company with limited liability is known as a Gesellschaft mit beschränkter Haftung (GmbH). A partnership is called a Kommanditgesellschaft (KG).

Related Research Articles

Administrative law is the body of law that governs the activities of administrative agencies of government. Government agency action can include rule making, adjudication, or the enforcement of a specific regulatory agenda. Administrative law is considered a branch of public law. As a body of law, administrative law deals with the decision-making of the administrative units of government that are part of a national regulatory scheme in such areas as police law, international trade, manufacturing, the environment, taxation, broadcasting, immigration and transport. Administrative law expanded greatly during the twentieth century, as legislative bodies worldwide created more government agencies to regulate the social, economic and political spheres of human interaction.

<i>Societas Europaea</i> legal form of an organisation

A societas Europaea is a public company registered in accordance with the corporate law of the European Union (EU), introduced in 2004 with the Council Regulation on the Statute for a European Company. Such a company may more easily transfer to or merge with companies in other member states.

Napoleonic Code code

The Napoleonic Code (French: Code Napoléon; officially Code civil des Français, referred to as Code civil) is the French civil code established under Napoleon I in 1804.

Civil code systematic collection of laws designed to deal with the core areas of private law

A civil code is a systematic collection of laws designed to deal with the core areas of private law such as for dealing with business and negligence lawsuits and practices. A jurisdiction that has a civil code generally also has a code of civil procedure. In some jurisdictions with a civil code, a number of the core areas of private law that would otherwise typically be codified in a civil code may instead be codified in a commercial code.

The Canadian legal system has its foundation in the English common law system, inherited from being a former colony of the United Kingdom and later a Commonwealth Realm member of the Commonwealth of Nations. The legal system is bi-jurisdictional, as the responsibilities of public and private law are separated and exercised exclusively by Parliament and the provinces respectively. Quebec, however, still retains a civil system for issues of private law.

Joint-stock company business entity which is owned by shareholders

A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares. Shareholders are able to transfer their shares to others without any effects to the continued existence of the company.

<i>Journal officiel de la République française</i> government gazette of the French Republic

The Journal officiel de la République française is the government gazette of the French Republic. It publishes the major legal official information from the national Government of France.

A foundation is a legal category of nonprofit organization that will typically either donate funds to and support other organizations, or provide the source of funding for its own charitable purposes. Foundations incorporate public foundations to pool funds and private foundations who are typically endowed by an individual or family.

Private limited company type of company used in many jurisdictions

A private limited company is a type of business entity in "private" ownership used in many jurisdictions in contrast to "public" ownership, with some differences from country to country. Examples include LLC in the US, private company limited by shares in the UK, GmbH in Germany or společnost s ručením omezeným in the Czech Republic.

The Statute of Westminster of 1275, also known as the Statute of Westminster I, codified the existing law in England, in 51 chapters.

Traffic code refers to the collection of local statutes, regulations, ordinances and rules that have been officially adopted in the United States to govern the orderly operation and interaction of motor vehicles, bicycles, pedestrians and others upon the public ways.

Limited partnership form of partnership

A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited partner.

Freedom of religion in Germany is guaranteed by article 4 of the German constitution. This states that "the freedom of religion, conscience and the freedom of confessing one's religious or philosophical beliefs are inviolable. Uninfringed religious practice is guaranteed." In addition, article 3 states that "No one may be prejudiced or favored because of his gender, his descent, his race, his language, his homeland and place of origin, his faith or his religious or political views." Any person or organization can call the Federal Constitutional Court of Germany for free help.

Vehicle registration plates are mandatory number plates used to display the registration mark of a vehicle registered in France. They have existed in the country since 1901. It is compulsory for most motor vehicles used on public roads to display them.

Law of France body of law in France

In academic terms, French law can be divided into two main categories: private law and public law. This differs from the traditional common law concepts in which the main distinction is between criminal law and civil law.

Voluntary association group of people with shared interests or aims

A voluntary group or union is a group of individuals who enter into an agreement, usually as volunteers, to form a body to accomplish a purpose. Common examples include trade associations, trade unions, learned societies, professional associations, and environmental groups.

Politics of France Overview of Frances government and democratic system

The politics of France take place with the framework of a semi-presidential system determined by the French Constitution of the French Fifth Republic. The nation declares itself to be an "indivisible, secular, democratic, and social Republic". The constitution provides for a separation of powers and proclaims France's "attachment to the Rights of Man and the principles of national sovereignty as defined by the Declaration of 1789."

References

  1. Art. 33 Code de Commerce, adopted by Law No. 2804, November 1807, Bull. des Lois No. 164 (1808), 161–299 (France).
  2. See Law of July 24, 1867 amending the Code de Commerce, Bull. des Lois 11e S., B. 1513, n. 15, 328 p. 94