Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 41
France
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Property
•
A specific rule has been enacted for companies or businesses that are below certain
thresholds: they cannot be held liable for not paying rent and building charges
that are due from March 12 to the end of a period of 2 months after the end of the
“lockdown period”. The thresholds are relatively low and should only benefit small
businesses that are strongly impacted. In particular, they require (i) either that the
business activity was stopped by the authorities or that it suffered a loss of 70% of
revenues, as well as (ii) various thresholds linked to the size of the business (e.g.
less than 10 employees, less than 1 million EUR annual revenues). A tax incentive
has been created for landlords in the form of a specific deductibility of rent waivers
granted by lessors between 15 April 2020 and 31 December 2020.
•
Courts are theoretically operating and emergency regulation has made it easier
to hold proceedings remotely, but in practice most courts have simply postponed
all hearings and deadlines until further notice and currently focus on extremely
urgent matters. On a case by case basis, certain courts can simply not be contacted
anymore, while others have put in place emergency contact procedures, which
can only be used in limited circumstances. Certain courts are starting to organize
hearings on the substance of cases at the end of May and in June, with or without
oral hearing (when the parties agree to it) and sometimes via videoconference. June
23 appears in an ordinance of May 13 as the potential date on which the period of
exceptional circumstances could end.
Have any changes
been made to
the laws around
property, rent and
enforcement?
Litigation
Are the courts
operating?
Tax
•
Various measures have been adopted to postpone the payment of both taxes and
social contributions, in principle for a limited period of a few months (but individual
solutions can usually be negotiated with the authorities) without penalties. It has
also been announced that the reimbursement of various tax credits would be
accelerated. There are no general measures of tax exemption at this stage but such
exemptions can be negotiated on a case by case basis in circumstances of severe
financial distress.
•
Various deadlines that are normally applicable under company law, such as for the
approval of annual accounts, have been extended by several months.
•
Rules have been enacted in order to facilitate shareholder meetings and board
meetings, in particular by allowing the use of videoconference systems, even when
the bylaws do not provide for that possibility.
Has any new
legislation been
introduced in light
of COVID-19?
Company
law matters
Have any measures
been put in place
to accommodate
social distancing
(such as remote
general meetings)?
Government measures in key jurisdictions
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