In the case of an SAS, it is possible to work under both your employment contract and your corporate mandate the functions of manager and employee of the company by meeting these conditions mentioned above.
In the case of an SARL, the head of the company works under a corporate mandate. As a result, he/she receives a remuneration that is not a salary. For him/her to be able to combine his corporate mandate with an employment contract, the employment contract must be valid. However, among the conditions to be met for an employment contract to be valid as mentioned above, a subordinate relationship must exist. In principle, the head of the SARL is subordinate to the General Meeting, as the latter has the power to dismiss him. As a result, it appears from case-law that the combination of a corporate mandate and an employment contract is not possible for the majority managing shareholder. The combination of the functions of a corporate mandate and an employment contract is therefore in principle possible for the minority managing shareholder and for the equal managing partner.
Get to know more about Alf’s services for companies by visiting our FAQs