Following our earlier post on the controversial Law of 31 July 2014, setting out an obligation for small and mid-size companies to inform employees in advance of an intention to sell 50% of the assets or shares (and to give the employees the opportunity to make an offer to buy), the French Parliament has been active in taking a further look at this obligation in the light of the widespread criticism of the measure.
On 5 November the Senat passed an amendment which was aimed at extinguishing the obligation. A mixed commission made up of representatives from both the upper and lower chamber of the French Parliament was then appointed to seek to agree a text on this issue to be passed by both chambers. The commission has however now decided to delete article 12A of the draft law on the Simplification of the Life of Businesses, which would have suppressed this obligation to inform the employees in advance.
The obligation to inform the employees therefore is still in force and must be complied with.