New regulations to appoint and to keep a statutory auditor in a SAS

The SAS have no longer to appoint a statutory auditor if two criteria among
three defined by the law are not met. The decree linked to the law dated
August 4, 2008 has been published on February 27, 2009. This decree
determines the rules of appointment and keeping of a statutory auditor in a
SAS. New regulations to appoint and to keep a statutory auditor in a SAS

The SAS have no longer to appoint a statutory auditor if two criteria among
three defined by the law are not met. The decree linked to the law dated
August 4, 2008 has been published on February 27, 2009. This decree
determines the rules of appointment and keeping of a statutory auditor in a
SAS.

It should be underlined that the above mentioned law has provided that SAS
have to appoint a statutory auditor if they control a company or if they are
themselves controlled  by a company.

Nevertheless, this appointment is no compulsory if during two fiscal years
before the end of the statutory auditor mandate, two out of the three
following thresholds are not passed :

-amount of the balance sheet : 1 000 000€,
-turnover before tax : 2 000 000€
-average number of employees : 20

Consequently, SAS which are not subsidiaries (that means not held over 50 %
by another company or held for less than 50 % if there is no other
shareholder having a percentage over the one held by the other parent
company) or which have no subsidiary

And

Do not pass two out of the three previous thresholds during the two fiscal
years before the end of the statutory auditor mandate,

Are not obliged to have a statutory auditor.

This question should be taken into consideration at the date of renewal of
the mandate of the statutory auditor. That also means that companies which
are organized under the form of a SA could have advantage to be transformed
into a SAS to avoid the appointment of a statutory auditor.

Anne Gervais de Lafond