Ethix

By Law

The conditions required to ask for the assistance of a Chartered Accountant, for Annual statement of accounts, are specified in the chapter “Organization of the Work’s Council” of the French Labour Code.

General framework of Annual statement of accounts  

«The Work’s Council may be assisted by a Chartered Accountant of its choice:
1° to analyse the Annual statement of accounts according L2323-8 article.
2° to analyse the documents listed in article L2323-10 maximum twice a the budgetary year.
3° respecting the conditions mentioned in article L2323-20, related to merging operations.
4° respecting the conditions mentioned in article L2323-78, related to economical warning notice.
5° when the procedure of consultation concerning the dismiss of 10 employees or more for economical reasons, during the same period of 30 day, is running (see L1233-30 article).»
(L2325-35 article)

The role of the Chartered Accountant of Work’s Council 

"The job of the Chartered Accountant is based on economical, financial or social information necessary to understand the accounts and to estimate accurately the situation of the company.»
(L2325-36 article )

The means at the disposal of the Chartered Accountant of the Work’s Council and its obligations of confidentiality during the assistance

«The Chartered Accountant can see the same documents as the Auditor to realize any checking or audit useful for its work. If he has to work on a merging operation mentioned in the L2323-20 article, the Expert has the right to see all documents of all companies concerned.»
(L2325-37 article)

«The Chartered Accountant and the Technical Expert mentioned in L2325-38 article are paid by the company. The President of Tribunal de Grande Instance is competent in case of problem on the amount of fees.»
(L2325-40 article)

«The Chartered Accountant and the Technical expert mentioned in L2325-38 are free to enter the company.»
(L2325-39 article)

«The Work’s Council can be assisted by any Expert paid by its funds to prepare its works.The decision is approved during a Work’s Council meeting.
All available documents are at the disposal of the selected Expert. He can enter the Work’s Council office, and on the basis of an agreement between the Board and the representatives majority, he may have access to the other offices of the company.»    (L2325-41 article)

«The Experts mentioned in this chapter must meet the secrecy requirements mentioned in L2325-5 article.»
(L2325-42 article)

Our comments

1. The choice of an Expert is only made by the Work’s Council.

2. This is a right for any Work’s Council whatever the legal structure of the company (Limited Company, Private Company limited by shares, SAS, Association, Mutual benefit company, …).

3. The law includes the concerns of the representatives: «all economical, financial and social issues» and the goal of the assistance, «evaluation of the company situation».
This presentation explains that accountancy is not the aim but means for the Expert in particular.

4. The Chartered Accountant has wide possibilities to investigate.

5. The company pays the Chartered Accountant but the Work's Council.

6. The requirement of professional secrecy applied in all certified jobs, is an essential principle of the assistance.