- August 14, 2019
- Posted by: Editorial
- Category: Legal representatives
Cases of changing Director’s
There are many situations in which a company could end up having to change its director or president. What are these situations, and what do they mean in France?
The term of the president comes to an end
In certain situations, such as if your company is an SA, the president is only nominated for a certain amount of time. In this case, the by-laws should mention how to designate a new president, and how the change is handled.
The president retiring
Whenever a company changes its president or director, it will have to modify its by-laws. However, in this case, there’s an additional consequence: the president will have to transfer his shares. If not, the company will have “vacant” shares.
The director is convicted
Sometimes, the director can be sued for abusing his power, or for misuse of corporate assets. Generally, this only happens when the company is in a very difficult financial position, so it’s likely that the associates will have to try to put the company back on track.
The consequences of the director changing
As mentioned earlier, changing directors always means that the by-laws will have to be modified. However, it also means that the distribution of social capital will have to be rearranged, as well.
As such, because of the many changes that can occur when a company changes its director, it might be worth taking this occasion to change the organization of the company, or to change its business culture!