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FREQUENTLY ASKED QUESTIONS/CORPORATE GOVERNANCE - How long does a C-level executive stay on?/

Entrepreneurs

How long is the term of a corporate mandate in a SAS?

 

As a quick reminder, the legal form of the SAS is favored by startups for its main advantage: its flexible organization. Indeed, almost anything can be set as a rule in the provisions of the company's articles of association.

 

As a result, regarding the term of corporate mandates in a SAS, the articles of association of a SAS must mention:

  • The competent body to appoint C-level executives
  • The quorum required for the appointment to be valid (simple majority or unanimity)
  • The duration of the executive's term of office

Be careful, however, the first President must be directly appointed in the Articles of Incorporation of the company.

The conditions of appointment of the President that are mentioned in the Articles of Association will then apply to the president succeeding to the first one (the one that was directly appointed in the Articles of Incorporation).

For the President of a SAS, it is appropriate to mention in the Articles of Association the duration of his term of office. Should there be no mention of the duration of his term of office, the latter will automatically be set for an indefinite period of time. This means that the president will keep his term of office during the whole company's life.

Similarly, for the managing director of a SAS, the Articles of Association must mention the duration of his duties. They can also be unlimited.

In general, as part of the constitution of your SAS, the President and every other corporate office executives are, to start with, appointed for an indefinite period of time, and at most for the duration of the President's mandate in order to maintain the team in place, or to replace/renew it if the President leaves the team. This is the option we recommend.

alf provides you with Articles of Association that are perfectly suited to your needs when you incorporate your company. For more information, please visit our page dedicated to the incorporation of your company.

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