Ethix

By law

Information on Estimated statement of accounts in the French Labour Code

«For the companies mentioned in L232-2 article of Trade Code, the documents mentioned in this article and L232-3 and L232-4 articles must be given to the Work’s Council. That is the same principle for the companies not included in L232-2 article of the Trade Code which make out these documents. The information given to the Work’s Council in regard of this article are confidential as mentioned in L2325-5 article. These rules concern Economic Interest Groupings mentioned in the L251-13 article of the Trade Code.»
(L2323-10 article)



Extract from L232-2 article of Trade Code

«In commercial companies, the Governing Board, the Executive Board or the Managers have to make out: a statement of the available and current assets, out of fixed assets and due liabilities, estimated profit and loss account, cash flow statement as well as the annual statement of accounts and investment plan.»
(Decree n°85-295 of 1st March 1985)

This decree gives the levels from which the company has to make out estimated statements. Thus, the company must prepare these documents if 2 on 3 of the following conditions are completed at the end of the budgetary year:

Our comments

1. The Estimated statement of accounts allow to decipher the economical and social strategy of the company, in other words, its choices, even more than the Annual statement of accounts.

2. By law, Estimated statement of accounts are often called “budget” in the French companies.

3. The best practices consist of naming the same Expert either for the Annual statement of accounts of the budgetary year or for the Estimated statement of accounts for the next year.

4. It is possible to work on reviewed "budget" twice a year maximum according to L2325-35 article to take in account the usual practices of the companies.

5. May we advise you to contact us before the Naming procedure to specify the environment, the challenges, and the attempts of the Work’s Council representatives, even more than in the case of the Annual statement of accounts.