The society of common law as a means for patrimonial transmission

We summarize, in the following lines, the functioning of a society of common law from the point of view of a heritage planning.

A "society of common law", also named under the term "civil society", is a civil contract of joint ownership, which means that heritage, which is brought, is joint between its partners. It has no distinct legal personality from its partners. This is actually an organized joint possession.

It is stated by a writing note (meeting the requirements of article 1341 of the Civil Code) which can be a private agreement. Therefore, a deed executed by a notary is not necessary.

The purpose of the company will consist mainly in "common management and investment share of his assets in different investment tools (stocks, shares, bonds, certificates, etc..)". One should note that commercial acts are prohibited. They could indeed cause the redevelopment of the company into a commercial society of common law.

As part of estate planning, the Pater Familias and often his wife are appointed statutory managers in the articles of association of law, which keeps the management of donated goods and to be almost "impossible to budge".

Indeed, the articles will give the managers broader powers to manage: they perform, excluding of any other partner, all acts necessary or appropriate to achieve the object of the company, therefore managing the undivided heritage and representing the partners in the proceedings against third parties and in court.

Moreover, the statutory manager cannot be dismissed "without legitimate cause" and is in this case "protected"; his dismissal being supposed to demonstrate the behaviour of an abusive management or on the contrary to manifest the interest of a society and its associates .

The society of common law will have a limited duration (eg 30 years, ending at the latest at the death of the husband and the wife) because the law provides that in case of indefinite duration, dissolution may be requested by any partner at any time, which is obviously not desirable.

Once incorporated, the society of common law has an ordinary functioning. It is not necessary to hold a double-entry accounting and simplified accounts should not be published. It should simply organize once a year a general meeting of partners during which the "accounts" are approved.

In a perspective of patrimonial transmission, even by giving at your children, donations can be accompanied by terms such as keeping not only incomes of given properties but also a very wide control.

However, notwithstanding these provisions, there will always be a limit, that you can only spend what you have given. Therefore, if you sell the shares of SA Group Equip (decision which will be yours only as managers of the society of common law), you can reinvest the profits from the sale and enjoy the income and products of these reinvestments but you cannot spend what you have given.