GIPE-PUNE-OIIOI2 - DSpace@GIPE

14 PRI;..JCWLES OF CONTROL qVER
The French law, unlike the German, is not particular
about the deposits or securities. Foreign companies
are not required to make any deposits unl~s the homecountries
co~pel the 'French companies to do so.
Particular classes of business are subject to special
Government supervision and control, for instance, life,.
endowment, savings and wor.kmen's compensation.
This supervision is applied as much to the foreign as to
the indigenous, companies. The regulations are, hewever,
so strict that very few foreign houses go in for these'
kinds of business. Thus, most of the 465 companies
noted above do business other than the four items
mentiones here.
The companies, indigenous as well as foreign, must
possess a share capital of 1,000,000 francs (Re. 1 =9 fro
approximately), of which only 25 per cent need be· paid
up. There is no legal restriction to the carrying on of
any kind of business on the strength of this capital. But
a permission or license is required in each instance a new
business is embarked ·upon. Besides, deposits may be
demanded for certain kinds. A legal reserve is' to beconstructed
with 20 per cent of the net profits until thereserve
reaches 20 per cent of the issued sharecapital.
Foreign companies are required to submit a special
balance sheetfor their French business. The supervising
and controlling' authority in this regard as in others is theministere
du travail (ministry of labour). It is interesting
to observe; however, that ih the A,sse1{uranz-/ahrbuch
(Band 50.) M. Daniel of Paris is in a position to report
the foreign life offices with figures about premium reserve
etc. but 'fails to do so in regard to the foreign fire offices.