Details on the postponement of General Meetings and their dematerialization

The 2020-318 ordinance provides an additional 3 months to approve their annual accounts to legal entities, as well as other entities. In addition, general meetings and meetings of college bodies of companies will be able to be held in a dematerialized manner.

 

Exceptional measure for financial statements closed between September 30^th, 2019 and June 24^th, 2020

To benefit from this delay, the closing of the accounts must be between September 30^th, 2019 and the expiry of a one month period after the termination date of the health emergency status declared by Article 4 of Law no. 2020-290 of March 23^rd, 2020 , i.e. until June 24^th, 2020 in principle — the end date of the health emergency status can be extended as a step forward. Thus, the many companies that close their accounts as of December 31^st, 2019 should benefit from this additional time. However, for entities that have appointed an auditor, this flexibility does not apply when that professional has submitted his accounts report before March 12^th, 2020.

These include:

• Civil and commercial companies;
• Economic interest groups;
• Cooperatives;
• Mutuals;
• Mutual unions and mutual federations;
• Mutual insurance companies and mutual insurance group companies;
• Provident institutes and social welfare group companies;
• Municipal credit unions and mutual agricultural credit unions;
• Funds;
• Associations;
• Foundations;
• Joint ventures.

 

Possible generalization of dematerialized general meetings for health reasons

Ordinance no. 2020-321 amends the rules for periodic meetings that are essential to the legal life of corporations. These events can now be held in a dematerialized manner for all affected entities — the list of entities is almost the same as that linked to Ordinance no. 2020-318. This is about the general meetings. They can be held without the right of those who have the right to attend or being done via a call or audiovisual conference. However, this possibility is only open when the meeting place is affected by an administrative measure limiting or prohibiting collective gatherings for health reasons. Members of the assemblies who participate via a call or audiovisual conference can be considered present for the calculation of the quorum and the majority of members necessary for these assemblies.

 

“Our experts are constantly monitoring regulatory changes providing support to businesses. Our articles are updated by midday on the basis of press releases and the publication of decrees by official bodies, which are deciphered by our experts. There may sometimes be a couple of hours delay between the official texts and our publication, the purpose of which is to provide you with preliminary answers to your questions."