Legal Insights

Organizing the management of their subsidiaries in France is a major concern for both French and foreign corporate groups.
Appointing senior executives to positions such as president or managing director partially addresses this issue. However, it does not always meet the challenges of day-to-day management, especially when the designated legal representative is distant from the place of operations.

The purpose of this article is to provide a practical overview of the principles governing the liability of corporate officers and the companies they represent, as well as the conditions for the validity of the delegations of authority they grant.

The new legal rules on paid leave entitlement during a medical leave, and on the taking of such paid leave, introduced by Law No. 2024-364 of April 22, 2024, became effective on April 24, 2024.

With a few exceptions, these new rules apply retroactively for the period between December 1, 2009 and April 24, 2024 (the day after publication of the Law).

The European Ecodesign for Sustainable Products Regulation (ESPR) was adopted by the European Parliament on April 23, 2024 and by the Council on May 27, 2024. This regulation establishes a general framework for the introduction of environmental sustainability standards for most products placed on the European market.

It replaces the existing Ecodesign Directive and extends its scope beyond energy products to all types of products placed on the EU market.

The 7th Choose France Summit, held on May 13, 2024, brought together nearly 200 foreign business leaders of 40 different nationalities. 56 foreign investment projects were announced, representing a total of €15 billion and 10,000 jobs.

Created in 2018 by President Emmanuel Macron, Choose France aims at highlighting the importance of international investment and presenting to international companies the reforms carried out by the French Government to promote economic growth on its territory.

Google has agreed to pay a substantial new fine of €250 million to the French Competition Authority for failing to comply with its commitments regarding related rights (also known as neighboring rights).

Law No. 2019-775 of July 24, 2019 “on the creation of related rights for the benefit of news agencies and press publishers”, that transposed Directive (EU) 2019/790 on copyright and related rights in the Digital Single Market, aims at ensuring fair compensation for news agencies and press publishers when their contents are reused on online platforms.

In three rulings issued on November 29, 2023, published in the Information Bulletin and Annual Report of the Cour de cassation (French Supreme Court), the Commercial Chamber of said Court reversed it case law on the requirements governing the assumption of pre-incorporation contracts.

In so doing, the Commercial Chamber wished to put an end to the undesirable effects caused by parties wishing to evade their commitments, which results in the weakening of companies during the start phase of their business activities and of third-party contracting parties who have not debtor to turn to in the event of cancellation of the relevant contract(s).