International Newsletter, July 2020
Foreign investments in France
 
The French foreign investment control regulation has been amended by two decrees dated 31 December 2019 and 27 April 2020.
 
From now on, transactions in the scope of French foreign investment control are (A) transactions consisting in either (i) the acquisition of control, (ii) the acquisition of a business line, or (iii) (for non EU/EEA buyers only) the acquisition of more than 25% of the share capital or voting rights, of (B) legal entities governed by French law and operating in sensitive sectors, mainly defense, aerospace, energy, transportation, public health, electronic communications, technologies, data centers, media, food safety and biotechnology, and (C) where the buyer is:
 
  •  an individual who is not French citizen;
  •  an individual who is a French citizen, but not a French resident for tax purposes;
  •  a legal entity which is governed by the laws of a foreign country; or
  •  a legal entity which is governed by French law, but controlled by one or more persons referred to under (a), (b) or (c) above.
 
In addition, the French government announced temporary COVID-related measures, which should be applicable from 1 July 2020 to 31 December 2020, lowering the threshold set out in paragraph (iii) above from 25% to 10% for listed target companies only.
 
Compliance – bribery and corruption
 
The 2016 Sapin II law aligned France’s anti-corruption regulation on the highest standards.
 
Sapin II created the French anti-corruption agency (“AFA”), which first aimed at providing companies with guidance on the effective implementation of these new anti-corruption rules.
 
AFA then conducted audits and its sanctions commission started to render decisions.
 
In a decision rendered in February 2020 against Imerys, AFA sanctions commission challenged the group’s anti-corruption programs, mainly on risk-mapping, code of conduct and accounting controls, and ordered the defaulting company to revise and improve its program. At this stage, no fine was imposed.
 
However, this decision should clearly be read as an educational work and a warning to Sapin II non-compliant companies.
 
Cybersecurity and data protection
 
In 2019, 39% of large European companies admitted having been victims of a cyber-attack.

With a huge number of people working remotely, notably because of the COVID pandemic, often with outdated security systems, cyber criminality will more than ever be a major concern.

Since GDPR’s entry into force in May 2018, the data controller of a company is responsible for the loss or theft of personal data. In any such case, the attacked company may be subject to financial sanctions, which may represent up to 4% of its annual worldwide turnover or EUR 20 million. French regulator CNIL has been increasingly applying fines on defaulting companies.

In this context, our Data Protection team has recently launched training programs in order to anticipate, act and react when facing a cyber-attack. 
 
Mediation
 
In the current environment, many projects have been impacted or shelved, requiring the immediate repatriation of expats or causing serious disruptions on construction sites.

Legal issues arising from these situations require expedient handling, which regular courts cannot offer.

As a result, businesses are increasingly resorting to mediation and expert review mechanisms as an alternative means to settle their disputes.

A mediator is a neutral and impartial third party appointed by the parties to the dispute. His/her role is to resolve disputes and enable parties to seek a new means of collaboration. Contrary to an arbitrator, the mediator does not render a decision but is there to enable the parties to find a settlement.

Over the years, our firm has acquired specific expertise in the area of mediation and expert reviews for dispute settlement across a wide breadth of practice areas, in particular for issues related to international mobility, and real estate and construction matters (e.g. disputes between a lessor and a lessee, or between a contractor, a project manager and a client).
 
 
 
Please feel free to contact us to find out more about these topics
 
 
Recently, DELSOL Avocats completed the following transactions:
 
 
Advised MediaSchool on a major fundraising round
 
 
Advised DHI Group Telecom on the acquisition of Bienvenue Wifi
 
 
 
Advised BMG Group on a major fundraising round with Sagax
 
 
 Advised AEM Holdings on the acquisition of MU-TEST
 
 
 
 
Advised MoneyGlobe on its sale to
Small World
 
Advised AVISA Partners on a major fundraising round
  
 
 
 
Advised Réalités on its capital increase on Euronext Growth
 
 
 

PARIS
DELSOL Avocats
4 bis, rue du Colonel Moll
75017 PARIS
+33 (0)1 53 70 69 69

LYON
DELSOL Avocats
11, quai André Lassagne
69001 LYON
+33 (0)4 72 10 20 30

.
 
 
LinkedIn
 
 
You have received this email because you have subscribed to or are registered in DELSOL Avocats’ contacts database. In accordance with the General Data Protection Regulation and the French Data Protection Act, you may at all times withdraw your consent to have your personal data processed by DELSOL Avocats. You also have the right to access, correct, delete, restrict and limit the portability of your personal data and the right to oppose to the processing of your personal data. Finally you have the right to lodge a complaint before the French National Commission for Information Technology and Individual Freedom (CNIL), should you consider that the use made of your personal data by DELSOL Avocats is in breach with the principles of data protection.
You may exercises your rights with DELSOL Avocats by mail to the following address : DELSOL Avocats, 11 quai André Lassagne - 69001 LYON - FRANCE, or by email to the following address: contact@delsolavocats.com.
You will be asked to provide proof of identity.
 
 
This mail was sent to adechenaud@delsolavocats.com
 
 
 
© 2020 DELSOL avocats