Government measures in key jurisdictions 3rd edition final - Flipbook - Page 53
France
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 operating and emergency regulation has made it easier to hold proceedings
remotely, but in practice most courts had simply postponed all hearings and deadlines until
further notice and focussed on extremely urgent matters. On a case by case basis, most courts
are now organising hearings with or without oral hearing (when the parties agree to it) and
sometimes via videoconference.
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 legal deadlines applicable under company law have been extended by: (i) 3 months for
the approval of accounts when accounts have not been approved before 12 March, (ii) 2 months
for the documents to be submitted to the supervisory board per art. L225-68 of the French
Commercial Code if the statutory auditor has not submitted his report before 12 March, (iii) 3
months for the liquidator to set the accounts of a company undergoing a liquidation, (iv) 3
months for submission of the financial report by companies who have benefitting from a public
subsidiary, and (v) 2 months for companies who have to produce an assessment of assets and
liabilities/a cash flow statement/a forecast estimated cash flow statement/a forecast estimated
results accounts.
•
Rules have been enacted in order to facilitate shareholder meetings and board meetings, in
particular by allowing the use of written decision, videoconference systems, even when the
bylaws do not provide for that possibility.
•
Limitation of payment of dividends: large companies who have benefited from State aids (taxa,
social, etc.) as a result of Covid-19 shall commit not to pay dividends unless required by law
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
53