Introduction to the Florange Law

The Florange Law in France: doubling of voting rights

In 2014, France brought the Florange Law into effect. The Florange law has the effect of automatically doubling one’s voting rights of a French issuer’s shares when they are held for two years or more. 

Some companies may have opted out of the Florange Law by indicating so in their articles of association. 

The Florange Law presents a unique challenge in Shareholding Disclosure, as the number of voting rights per share affects the percentage holdings in the EU jurisdictions under the Transparency Directive (Amended). 

Rapptr provides a solution to this challenge by automatically doubling the voting rights for positions (assets) of French companies that clients have flagged as being held for two years or more. 

Such positions can be identified in the position file by separating the quantity of shares which have been held for 2 or more years into their own asset/position and declaring “true” for the property IsFlorangeApplicable. Other conditions should be checked before declaring this property; see the description and notes for IsFlorangeApplicable in the Property menu or in the Rapptr data spec. If IsFlorangeApplicable is undeclared or set to false, the Florange Law does not apply to the position.

Please note that the automatic doubling of voting rights for flagged positions will only be applied to rules which ultimately use the calculated property “EquivalentVotesTD2”. The full list of rules using this property can be queried by clicking “Used in rules” from the property screen for EquivalentVotesTD2.

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