Disclaimer: This translation is a working translation only and is not legally binding.
9. What happens if the conditions tied to the authorisation are not
met?
If an investor fails to comply with one or more conditions tied to the authorisation, and
following an adversarial procedure initiated by a notice to the investor from the Minister for
the Economy, the Minister may take one or more of the following measures:
1. Withdraw the authorisation;
2. Order the investor to comply with the initial conditions within a specified period of
time;
3. Enforce compliance with new conditions, such as requiring the investor to divest
certain activities or return to the status quo ante.
Enforcement orders may be cumulatively accompanied by a daily penalty payment to
encourage compliance and/or precautionary measures. The Minister may also impose a
fine (see Question 8).
Lastly, criminal measures may be imposed upon complaint by the Minister for the Economy
if conditions tied to an authorisation are violated, in accordance with Article 459 of the
Customs Code.
10. What happens if the investor obtained authorisation in a
fraudulent manner?
The Minister may impose a fine (see Question 8) and criminal measures may be ordered
upon complaint by the Minister, in accordance with Article 459 of the Customs Code.
11. What is the procedure to request an opinion on whether a
business activity requires screening?
A request for opinion is a streamlined procedure allowing investment stakeholders to better
plan for a transaction. Both the foreign investor and the French company in which a
foreign investment might take place can seek an opinion from the administration before
initiating an investment transaction in order to confirm whether prior authorisation is required
(Article R.151-4 of the Monetary and Financial Code). The purpose of this request for opinion
is to provide more certainty and predictability for the transaction and for the stakeholders
from the moment negotiations begin or as soon as the French entity considers raising capital.
The French company can take advantage of this procedure to more accurately value the
financing it needs for development and more effectively pursue new investors. This also
helps the French company, and the foreign investor, to better anticipate any conditions
precedent to the transaction.
The file that must be submitted is more succinct than an application for authorisation given
that the government only needs to review information pertaining to the French company’s
activities. A form is available on the Directorate General of the Treasury’s website.
The Minister for the Economy will decide if the French company’s business activities require
screening within two calendar months.
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December 2022