Government measures in key jurisdictions 5th edition - Flipbook - Page 52
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.
The decree No. 2020-925 of July 29, 2020 provides that these measures are
appliable retroactively since March 12 until November 30, 2020.
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.
The ordinance No. 2020-1497 of December 2, 2020 provides that these measures
are extended until April 1, 2021.
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)?
•
•
•
•
52
Government measures in key jurisdictions
