France's New Legal Framework For Profit-Sharing Premiums

Law360, New York (July 12, 2012, 1:29 PM EDT) -- The French law system provides various ways to secure the involvement of employees in the growth and profits of their company, including compulsory deferred profit-sharing plans (accords de participation), optional voluntary cash-based profit-sharing schemes (intéressement) and other similar mechanisms.

Recently, France passed new laws and regulations to ensure employee participation in company share capital and profits through specific mechanisms that are triggered by certain events and/or corporate decisions.

For example, in 2004, the French Code of Commerce[1] was amended to provide that a decision to increase the share capital through cash contributions must be followed by a shareholder resolution to either...

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