• France's New "Free Share" Law: Implications for Employers & Employees
  • February 5, 2005 | Authors: Joseph J. Smallhoover; Kathie D. Claret; Jean-Francois Lelouch
  • Law Firm: Dechert - Office
  • In order to encourage the shareholding of employees, the French Finance Law for 2005 applicable as of January 1, 2005 (the "Law") creates a new mechanism enabling the attribution of free shares by both listed and non listed companies to their employees and their legal representatives (President, General Manager, Delegated General Managers, Managers, etc) in France. This new system, which is close to the current regime applicable to stock options, benefits from a favorable tax and social regime, as long as certain conditions are met.