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ARTICLE · 12 DECEMBER 2019

PACTE Law: Softened Conditions For Operating A Shareholder Current Account

The shareholder current account is a corporate finance tool that is very popular among shareholders because of its ease of implementation and its neutrality with regard to the control of the company.

FranceCorporate/Commercial Law

The shareholder current account is a corporate finance tool that is very popular among shareholders because of its ease of implementation and its neutrality with regard to the control of the company.

The so-called PACTE Law No. 2019-486 of May 22, 2019 has streamlined the terms and conditions governing current account advances (i) by lifting the requirement under which the shareholders had to hold at least 5% of the company’s share capital on the one hand, and (ii) by legally recognizing the validity of current account advances made by Presidents of simplified joint stock companies and by general managers and deputy general managers of joint stock companies and simplified joint stock companies on the other hand.

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