What is the difference between shareholders’ liability in a public limited company (SA) and partners’ liability in a limited liability company (SARL) in France?

Question from Veles, What is the difference between shareholders’ liability in a public limited company (SA) and partners’ liability in a limited liability company (SARL) in France?

Answer from AI:

In France, the legal structure of a company determines the extent of liability for its owners. The two common types of companies are the Public Limited Company (Société Anonyme, SA) and the Limited Liability Company (Société à Responsabilité Limitée, SARL). The main difference between these two lies in the extent of liability for the shareholders or partners.

Shareholders’ Liability in a Public Limited Company (SA)

In a Public Limited Company (SA), shareholders’ liability is limited to their contribution to the company’s capital. This means that if the company incurs debts or liabilities, the shareholders are not personally responsible for them. Their risk is limited to the amount they have invested in the company.

Partners’ Liability in a Limited Liability Company (SARL)

In a Limited Liability Company (SARL), the partners’ liability is also limited to their contributions to the company’s capital. Similar to an SA, the partners are not personally liable for the company’s debts beyond their investment in the company.

Key Differences

While the liability of shareholders and partners in both types of companies is limited to their contributions, there are some key differences between an SA and a SARL:

• Number of Shareholders/Partners: An SA requires at least seven shareholders, while a SARL can be formed with just one partner.
• Capital Requirements: The minimum capital requirement for an SA is €37,000, while a SARL can be formed with any amount of capital.
• Management: An SA is managed by a board of directors and a chairman, while a SARL is managed by one or more managers.

It’s important to note that while this information provides a general overview of the differences between an SA and a SARL in France, the specifics can vary depending on the individual circumstances of the company and its owners. For personalized advice, it’s recommended to consult with a legal professional.

For more information, you can refer to the French Public Service website (in French) or the French Ministry of Economy and Finance website (in French).