{"id":121396,"date":"2025-11-27T09:36:08","date_gmt":"2025-11-27T09:36:08","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=121396"},"modified":"2025-11-27T09:36:08","modified_gmt":"2025-11-27T09:36:08","slug":"france-shareholder-activism","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/france-shareholder-activism\/","title":{"rendered":"France: Shareholder Activism"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-121396","comparative_guide","type-comparative_guide","status-publish","hentry","guides-shareholder-activism","jurisdictions-france"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">White &amp; Case<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2018\/11\/White_Case_logo_RGB-2.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">White &amp; Case<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2018\/11\/White_Case_logo_RGB-2.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Shareholder Activism laws and regulations applicable in France<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the principal sources of laws and regulations relating to shareholder rights and activism? Do insider trading and\/or market abuse rules apply to activist activity?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In France, activism is not governed by a dedicated legal or regulatory regime. Neither French nor EU law currently provides a specific legal framework exclusively addressing shareholder activism.<\/p>\n<p>Shareholder engagement in relation to French companies is mainly governed by:<\/p>\n<ul>\n<li>Company law, through the French Code of Commerce (FCC), which provides for most of the shareholder rights, governance structures, and procedures for corporate decisions;<\/li>\n<li>Financial market regulation, including the French Monetary and Financial Code, the <em>Autorit\u00e9s des Marches Financiers<\/em> (AMF) General Regulation, EU Regulation 596\/2014 on Market Abuse (EU MAR), the Transparency Directive and Shareholders Rights Directive (SRD I &amp; II), all of which impose (directly or indirectly) strict rules on transparency, disclosure, and market integrity; and<\/li>\n<\/ul>\n<p>Soft law which complements the legal framework, including positions adopted by the AMF and corporate governance codes (AFEP-MEDEF, Middlenext).<\/p>\n<p>EU MAR, as interpreted by the AMF, applies to (long and short) investors in French listed companies and insider trading is therefore strictly prohibited.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is shareholder activism viewed in your jurisdiction by regulators, shareholders (both institutional and retail) and the media?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Shareholder activism in France has undergone a notable evolution in perception. Historically regarded with suspicion and often seen as antagonistic to French corporate traditions, activism \u2013 particularly long-only strategies \u2013 has gained increasing legitimacy over the past decade. Influential think tanks and parliamentary reports have contributed to reframing activism as a potentially constructive force that may enhance governance and long-term value. However, this shift does not extend to short-selling, which remains rare in the French market and continues to carry negative connotations among regulators, issuers and the media.<\/p>\n<p>The AMF has updated its policy, choosing soft law over rigid regulation, acknowledging the complexity of defining activist practices and supporting transparency and good conduct.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How common are activist campaigns and what forms do they take? Is activism more prevalent in certain industries?  If so why?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Shareholder activism in France has become more visible and structured in recent years, though it remains moderate in volume compared to Anglo-American markets. Each year, fewer than ten publicly disclosed campaigns are usually recorded in France, but this underrepresents actual activity, as most shareholder engagements remain private and are resolved through confidential dialogue with boards of directors of target companies.<\/p>\n<p>France accounted for 16% of all European activist campaigns in 2024 \u2013 more than double the prior year\u2019s figure (7%) and significantly above its historical average (12%). The majority of these campaigns targeted companies under US$5 billion market cap, which represented 88% of French targets.<\/p>\n<p>Campaigns are no longer led predominantly by high-profile hedge funds. In 2024, 40% of campaigns in France were initiated by institutional investors.<\/p>\n<p>Most activist strategies begin privately and escalate only if dialogue fails. Public campaigns may involve open letters, white papers, dedicated websites, shareholder resolutions (often the maximum visible escalation) or media engagement.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How common is it for shareholders to bring litigation against a company and\/or its directors and what form does this take?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While litigation by activists remains relatively rare in France, the past few years have seen several cases arise per year, typically in the context of contested governance decisions, acquisitions or perceived disclosure failures. Recent litigation includes:<\/p>\n<ul>\n<li>challenging the price of a takeover bid with the AMF and appealing the AMF\u2019s decision to the Paris Court of Appeal;<\/li>\n<li>requesting that the AMF order a buyout offer to be made and appealing the AMF\u2019s decision to the Paris Court of Appeal;<\/li>\n<li>requesting that the Commercial Court appoint a representative to convene a shareholders\u2019 general meeting; and<\/li>\n<li>challenging the exclusion of a resolution from the agenda of a shareholder general meeting by initiating expedited proceedings on the merits before the Commercial Court.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights do shareholders\/activists have to access the register of members?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Any shareholder within the 15 days preceding a general meeting may inspect and obtain copies of the list of registered shareholders. Shareholders may also inspect and obtain copies of the company\u2019s annual accounts, auditor reports, minutes and attendance sheets of general meetings, in each case for the last three financial years.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights do shareholders have to requisition a shareholder meeting and to table a resolution at the meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li><strong>Right to requisition a general meeting \u2013 5% threshold: Under<\/strong> Article L. 225-103 of the FCC, shareholders holding at least 5% of the share capital and any interested person in case of emergency (and in any event solely if the request is aligned with the corporate interest of the said company) may request the court to appoint a legal representative to convene a general meeting if the board fails to do so.<\/li>\n<li><strong>Right to propose resolutions or agenda items \u2013 decreasing thresholds:<\/strong> According to Article L. 225-105 of the FCC, one or more shareholders representing at least 5% of the share capital may formally request the inclusion of resolutions or additional items on the meeting agenda. For companies with large capitalisations, this threshold is lowered (see Article R. 225-71 of the FCC), with thresholds calculated based on the share capital of the target company, situated around 0.5% for major listed companies. Requests must be made in writing and submitted within 25 days of the publication of the meeting notice (Article R. 225-73 II of the FCC). If a proposed resolution or agenda item is refused by the board of directors, shareholders may challenge such refusal by filing expedited proceedings on the merits before the Commercial Court.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a shareholder requisitions a meeting, who is responsible for the costs of calling and holding the meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The issuer is responsible for the costs of calling and holding the meeting.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any rights to circulate statements to shareholders?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li><strong>Legal right to circulate statements as part of the shareholders\u2019 general meeting agenda:<\/strong> as part of proposing a resolution or an item (see #6 above), any shareholder may attach a brief explanatory statement, which must be circulated by the company to all shareholders in accordance with applicable notice procedures. When shareholders have filed additional draft resolutions, the AMF recommends that companies should mention their statement in the meeting notice.<\/li>\n<li><strong>White papers and market communications by activists:<\/strong> activists frequently use \u201cwhite papers\u201d style communication \u2013 as well as investor letters, strategic presentations or videos, dedicated websites \u2013 circulated directly to shareholders or posted online. While not prohibited, these types of communications are not directly regulated by the FCC. In the context of a white paper, specific attention should be paid to EU MAR (and associated regulations) regarding investment recommendations and for disclosure of interests.<\/li>\n<\/ul>\n<p>The AMF recommends that any investor who initiates a public campaign against an issuer should promptly send the issuer any plans and proposals, together with the corresponding arguments that the investor may present to shareholders in this context. In addition, when an investor launches a public campaign against an issuer, it is good practice for the investor concerned to make these plans and proposals public in order to ensure that the market is well informed and that shareholders are treated equally. It is also recommended that any public campaign be preceded by an attempt by the investor concerned to engage in dialogue with the issuer.<\/p>\n<p><em>Footnote:<\/em> Article R. 225-71 of the FCC; Position-recommandation Guide de l\u2019information permanente et de la gestion de l\u2019information privil\u00e9gi\u00e9e DOC-2016-08<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who is entitled to attend and speak at a shareholders\u2019 meeting?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Pursuant to Article 1844 of the French Civil Code, participation in general meetings is a fundamental right of shareholders. The right to attend, speak, and vote at a general meeting is based on the ownership of shares, irrespective of their number or the shareholder\u2019s nationality or purpose.<\/p>\n<p>According to Article R. 22-10-28 of the FCC, shareholders of French listed companies must register their shares no later than two business days before the meeting to be admitted, either:<\/p>\n<ul>\n<li>in a registered account; or<\/li>\n<li>through a certificate of shareholding issued by an authorised intermediary (for bearer shares).<\/li>\n<\/ul>\n<p>In addition, Article L. 225-108 of the FCC grants any shareholder the right to submit written questions to the board, up to four business days before the meeting. The board is required to respond during the meeting, orally or by writing (in this case, the answers are published on the company\u2019s website) but may provide a single answer to questions which are similar in nature.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What percentage of share capital is needed to appoint or remove a director?  What is the process?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article L. 225-18 of FCC, directors are appointed and removed by the ordinary general meeting (AGO), at any time and without cause (<em>ad nutum<\/em>), as long as it is not vexatious.<\/p>\n<p>The resolution is passed by a simple majority of votes cast, in accordance with Article L. 225-96 I of FCC, regardless of capital held or represented.<\/p>\n<p>Removal and replacement of a director can be requested during a general meeting by any shareholder, without prior notice (Article L. 225-105 paragraph 3 of the FCC).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What percentage of share capital is needed to block a shareholder resolution?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The threshold required to block a shareholder resolution depends on the type of resolution being considered. Resolutions at ordinary general meetings require a simple majority of votes cast and can therefore be blocked by a shareholder holding 50% or more of the votes cast. Resolutions at extraordinary general meetings require the approval of two-thirds of the votes cast and may therefore be blocked by a shareholder holding more than one-third of the votes cast. For these purposes \u2018votes cast\u2019 excludes votes attached to shares for which the shareholder did not take part in the vote, abstained, or cast a blank or null vote.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do holders of other instruments (e.g. options, warrants, contracts for difference, swaps, cash-settled derivatives) have any of the above rights?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Only registered shareholders (<em>actionnaires inscrits<\/em>) in the company\u2019s share register (for nominative shares) or in the bearer share account held by an authorised intermediary (for bearer shares) may exercise shareholders\u2019 rights at general meetings.<\/p>\n<p>Holders of derivative instruments (such as options, warrants, cash-settled swaps or CFDs) do not qualify as shareholders and therefore do not enjoy any of the rights attached to the shares.<\/p>\n<p><em>Footnote:<\/em> Article R22-10-28 of the FCC.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is stamp duty payable on share acquisitions?  Can this be avoided\/mitigated (e.g. through use of derivatives)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Only registration fees apply in France. Share transfers may be subject to registration fees equal to 0.1% of the price only if the sales are formalised in a deed (e.g., a share purchase agreement for a block-sale) that is voluntarily or obligatorily registered. If no such deed is executed or registered (as it is customary for most transfers of listed shares), no fee is payable in principle unless the parties voluntarily register the sale with the French tax administration. By exception, no registration fees are due in case the sale is subject to the French Financial Transaction Tax (see below).<\/p>\n<p>In addition, a specific French Financial Transaction Tax (FTT) applies to acquisitions of shares in listed French companies with a market capitalisation above EUR 1 billion on 1 December of the preceding calendar year. The 2025 Finance Act has increased the rate of the FTT from 0.3% to 0.4%. It is now due regardless of the place of execution or the residence of the buyer. Derivatives and cash-settled instruments are excluded from the FTT. As such, acquisitions via derivatives (e.g., options, swaps, CFDs) do not trigger the FTT, provided they do not result in an actual share transfer.<\/p>\n<p><em>Footnote:<\/em> Articles 680 and 235 ter ZD of the French General Tax Code.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what level can you acquire shares without having to publicly (or privately) disclose your position?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Public Disclosure<\/strong><\/p>\n<ul>\n<li>Any individual or legal entity, acting alone or in concert, shall notify both the company and the AMF when their holding exceeds or falls below certain legal thresholds of capital or voting rights.<\/li>\n<li>These thresholds are set at: 5%, 10%, 15%, 20%, 25%, 30%, 33\u2153%, 50%, 66\u2154%, 90%, and 95%.<\/li>\n<li>Notification must occur within four trading days following the crossing of the threshold.<\/li>\n<li>The built position will be precisely disclosed on the AMF website.<\/li>\n<\/ul>\n<p><strong>Private Disclosure<\/strong><\/p>\n<ul>\n<li>Companies may include in their bylaws a statutory disclosure requirement for shareholders crossing lower thresholds, starting at 0.5% of the capital or voting rights.<\/li>\n<li>Notification is only made to the company concerned, not the AMF.<\/li>\n<li>Companies are free to disclose activists\u2019 positions to the market.<\/li>\n<\/ul>\n<p><em>Footnote:<\/em> Article L. 233-7 of the FCC.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the disclosure threshold different if the issuer is subject to a takeover offer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, the following persons and entities must report daily to the AMF on the transactions (location, price, number of securities, parties) they have carried out resulting in or likely to result in a transfer of ownership in the securities or voting rights targeted by the takeover bid, including any transactions involving financial instruments or agreements that have a similar economic effect to that of owning said securities: (i) the persons concerned by the takeover bid; (ii) persons or entities that hold on their own or in concert at least 5% of the share capital or voting rights in the target company; (iii) persons or entities that hold on their own or in concert at least 5% of the securities other than shares targeted by the offer; (iv) members of the boards of directors, supervisory boards or executive boards of the persons concerned by the takeover bid; (v) persons or entities that have on their own or in concert increased their holding to 1% or more of the equity of the target company, or 1% or more of the total securities other than shares targeted, since the beginning of the offer period or, where appropriate, the pre-offer period, for as long as they hold such a quantity of securities.<\/p>\n<p><em>Footnote:<\/em> Article 231-46 of AMF General Regulation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any rules which restrict the speed at which you can build a position?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li><strong>\u201cExcess speed\u201d rule (Article 234-5, AMF General Regulation):<\/strong> an investor who already holds between 30% and 50% of the share capital or voting rights of a listed company may not acquire more than 1% of additional voting rights over a rolling 12-month period without triggering the obligation to file a takeover bid.<\/li>\n<li><strong>Voting Rights Caps (Article L. 225-115, FCC):<\/strong> voting rights caps can be included by companies in their bylaws to limit the influence of major shareholders and prevent any single shareholder from gaining too much control too quickly.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there circumstances in which a mandatory takeover is required?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article 234-2 of the AMF General Regulation, any person (acting alone or in concert) acquiring more than 30% of the share capital or voting rights of a listed company shall file a takeover bid for all remaining shares of the said company.<\/p>\n<p>The rules on mandatory tender offers do not apply where the AMF grants an exemption to persons who show, among other things, that they crossed the relevant threshold in connection with (i) certain transactions that are subject to shareholder approval (including mergers and capital increases resulting from an asset contribution or from the restructuring of a distressed company); (ii) the acquisition of a holding company owning more than 30% of the capital or voting rights of a listed company for which company such stake does not constitute an essential asset; or (iii) certain corporate or other events (including gifts between individuals, distribution of assets by a legal entity pro rata according to the interests of its members, reduction in the number of equity securities or voting rights in the company, and intra-group re-sales).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does collective shareholder action or \u2018acting in concert\u2019 have any consequences in your jurisdiction (e.g for disclosure purposes or the rules on mandatory offers)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Disclosure Obligations:<\/strong><\/p>\n<ul>\n<li>Under Article L. 233-10 of the FCC, shareholders acting in concert must aggregate their holdings for the purposes of public disclosure.<\/li>\n<li>If the collective ownership exceeds any of the statutory thresholds (e.g., 5%, 10%, 20%, etc.), they are also required to disclose (on top of their individual disclosure obligation) the total holding as if they were a single shareholder.<\/li>\n<\/ul>\n<p><strong>Mandatory Takeover Bids (Article 234-2 of the AMF General Regulation):<\/strong> As explained in 3d above and subject to specific exemptions, shareholders acting in concert acquiring 30% or more of a company&#8217;s voting rights, are obliged to file a takeover bid for the remaining shares.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the same rules and thresholds apply to other instruments (e.g. options, warrants, short positions, contracts for difference, swaps, cash-settled derivatives)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under French law, the standard rules on threshold disclosures (<em>franchissement de seuils<\/em>) apply not only to direct holdings of shares or voting rights, but also to financial instruments conferring access to equity or economic exposure (Article L. 233-7 of the FCC).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">If an activist makes a takeover offer, what impact might any prior share purchases have on the minimum offer price or the form of consideration that must be offered?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under Article 234-6 of the AMF General Regulation, when a proposed takeover bid is filed pursuant to the mandatory offer regime, the proposed price must be at least equivalent to the highest price paid by the offeror, acting alone or in concert, in the twelve-month period preceding the event that gave rise to the obligation to file the said takeover bid. This is the main price constraint existing pursuant to French Takeover Regulation.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What measures are available to companies to protect against an activist campaign?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><ul>\n<li><strong>Preventive dialogue and transparency:<\/strong> Issuers are encouraged to engage in ongoing dialogue with shareholders and to enhance transparency on governance and ESG matters, reducing the asymmetry activists often exploit (cf: <em>Paris Europlace, Guide to shareholder dialogue, 2024<\/em>).<\/li>\n<li>\u201c<strong>Be your own activist\u201d:<\/strong> directors are encouraged to challenge their own strategy and governance structure in order to anticipate activists\u2019 tactics. Specific training for directors is recommended.<\/li>\n<li><strong>Shareholder identification tools: Under<\/strong> Article L. 228-2 of the FCC, companies may request from financial intermediaries the identity of shareholders holding shares in bearer form (<em>titres au porteur<\/em>), allowing early detection of stakebuilding by activists. Where shares are held in nominative form, shareholders are already known to the company.<\/li>\n<li><strong>Double voting-rights for long-term shareholders:<\/strong> French law provides that once shares have been registered for a period of two years in the name of the same shareholder, they are entitled to double voting rights at the end of this period (Article L. 225-123 of the French commercial code). Shares are categorised as &#8220;<em>registered shares<\/em>&#8221; when the name of the shareholder appears in the share register of the company. Double voting rights are usually lost when the shares are transferred by the shareholder, subject to certain exemptions set out in the FCC (e.g., in the event of a (i) merger; (ii) spin-off; or (iii) partial contribution subject to the spin-off regime).<\/li>\n<li><strong>Voting rights caps:<\/strong> See #16 above.<\/li>\n<li><strong>Disclosure thresholds included in the bylaws of the listed company:<\/strong> see #14 above.<\/li>\n<\/ul>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What duties do directors owe to a company and its shareholders?  Highlight any that are particularly relevant in the context of an activist campaign.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p><strong>Duty to act in the company\u2019s corporate interest:<\/strong> this duty requires directors to act in the interest of the company, taking into account social and environmental considerations.<\/p>\n<p><strong>Duty of loyalty and independence:<\/strong> Directors must avoid conflicts of interest and act independently and with loyalty towards the company and all shareholders, including when assessing activist proposals or responding to pressure from significant shareholders.<\/p>\n<p><strong>Equal treatment of shareholders:<\/strong> Directors must ensure that all shareholders are treated fairly and equitably, a principle strictly enforced by the AMF in cases of selective disclosure or unequal access to information.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What rights does a company have to require parties to disclose details of their interests (direct and indirect) in the company\u2019s share capital?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>See #21 above, Shareholder identification tools.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there restrictions on companies selectively disclosing inside information to activists?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under EU MAR, selective disclosure of inside information to any market participant, including activists, is strictly prohibited other than in very limited circumstances and subject to absolute confidentiality and future full disclosure to the market. The risk of selectively disclosing privileged information to activists inadvertently is often highlighted and executives \/ boards should engage with activists using only publicly available information, focusing on differing analyses rather than undisclosed facts. To mitigate risks, some activists publish their entire dialogues, ensuring transparency and transforming private discussions into public campaigns.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are settlement agreements between a company and an activist permitted in your jurisdiction?  How common is it for activist campaigns to be resolved in this way?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Permitted under French law, settlement agreements allow companies and activists to resolve disputes privately. These agreements are rare, mostly confidential and mainly governed by French contract law.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3645<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/121396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=121396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}