Company Foundation

A company foundation is set up to carry out a work of general interest.

It may be a philanthropic, educational, scientific, social, humanitarian, sporting, family or cultural work. But also the promotion of the artistic heritage, the defense of the natural environment or the dissemination of French culture, language and scientific knowledge.

The implementation of a work of general interest shall be carried out in accordance with a multiannual action program.

A company foundation may be set up by one or more companies or by one or more of the following:

• Civil or commercial businesses
• Industrial and Commercial Public Establishments (Epic)
• Cooperatives
• Provident or mutual benefit institutions

The creation of a company foundation is the subject of a application for authorization to the prefecture of department in which it will have its seat.

The prefectural services analyze the request and, after validation, draw up a prefectural decree.

The file is then forwarded to the Ministry of the Interior for publication in the JOAFE: titleContent.

Leaders can download a copy of the ad published in JOAFE, called proof of publication.

This document is to be retained throughout the life of the foundation. This publication is free.

The existence of the foundation is effective from this publication.

Information needed

The application for authorization, submitted by the founder(s), must contain the following information:

• Name of the company Foundation
• Seat and duration
• Social reasons, names, seats and activities of the founder(s)
• Names, forenames, professions, domicile and nationalities of the founders or their representatives who will sit on the board of directors

Documents needed

The application for authorization shall be accompanied by the following documents:

• Request for publication form to JOAFE: titleContent
• Draft statutes of the Foundation
• Act by which the founder or founders undertake to pay the initial allocation
• Contract(s) of surety

A company foundation is administered by a board of directors.

This advice includes:

• up to 2/3, the founders and staff representatives of the founding companies,
• and for at least 1/3 of the qualified personalities chosen by the founders.

The number and conditions of appointment and renewal of the members of the Management Board shall be laid down in the Statutes.

The board of directors makes all decisions in the interest of the company foundation. It decides on legal actions, votes on the budget, approves the accounts and decides on borrowings.

The President represents the Foundation in court and vis-à-vis third parties (persons outside the Foundation).

The Foundation shall draw up a balance sheet, a profit and loss account and an annex each year. It shall appoint at least 1 auditor.

Each year, the foundation sends the prefect an activity report, its annual accounts and the auditor's report.

A company foundation's assets include:

• Founder's Payments
• Subsidies public
• Proceeds from fees for services rendered
• Investment income from its resources
• Possibly loans

a company foundation cannot appeal to public generosity, or receive donations or bequest.

However, it may receive gifts from employees, agents, members, members or shareholders of the founding company or companies of the group to which the founding company belongs.

When a company foundation receives more than €153,000 grants, it duty publish its annual accounts and the auditor's report on the Associations section of the website journal-publique.gouv.fr.

Publication of the annual accounts of associations, foundations and endowment funds

The statutes of the Foundation shall include a multiannual action program of at least €150,000.

The sums that each founder undertakes to pay are guaranteed by a bond in case he is unable to make the agreed payment.

These amounts may be paid in installments over a maximum period of 5 years.

A founder may withdraw from the foundation if he has paid in full the sums he has committed to pay.

If the foundation is extended, the founders commit to a new action program and, if necessary, supplement the initial allocation.

Initial Duration

A company foundation is set up for a fixed term of Minimum 5 years.

Extension

The duration of existence may be extended by the founders, or only some of them, for a period of 3 years minimum.

In this case, the extension of the foundation beyond its original duration shall be subject to a statement to the prefecture of the foundation's headquarters department.

Any amendment to the statutes duty be the subject of a application for authorization to the prefecture of the foundation's headquarters department.

The request shall be made by the Chairman of the Management Board.

It shall mention each of the amendments to the Staff Regulations requested. It must be accompanied by the following documents:

• Request for publication form to JOAFE: titleContent
• Copy of current and proposed new statutes
• Extracts from the deliberations of the Management Board amending the statutes
• Bank certificates certifying the payment by the founders of the funds they have committed to pay
• List of the names, forenames, professions and domicile of the members of the Board of Directors in office at the date of the application and of the directors whose term of office has ended.

The prefectural services analyze the request and, after validation, generate a prefectural decree.

The file is then forwarded to the Ministry of the Interior for publication in the JOAFE: titleContent.

This publication is free.

The amendment of the statutes shall take effect from that publication.

Changes in the administration or management of a company foundation shall be reported to the Prefect within 3 months .

A company foundation may be dissolved in the following cases:

• Arrival of the scheduled term
• Amicable dissolution, by the withdrawal of all the founders, on condition that they have paid in full the sums they committed themselves to pay when the foundation was created
• Withdrawal of authorization by the prefect.

The dissolution is managed by a liquidator, appointed by the board of directors or by the court of the seat of the foundation.

The dissolution shall be published in the JOAFE: titleContent. The liquidator must complete a form and send it to the Directorate of Legal and Administrative Information (Dila):

Dissolution of a company foundation

Unused funds shall be allocated by the liquidator to one or more public or recognized public utility institutions whose activities are similar (similar) to those of the dissolved company foundation.