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Management in French companies

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  1. Limited liability company (''SARL'')
  2. Limited joint stock company (''SA'')
    1. Limited Joint Stock Company with a Board of Directors and a Managing Director
    2. Limited Joint Stock Company with a Managing Board and a Supervisory Board
  3. Simplified joint stock company (''SAS'')

An essential distinction is drawn in French labor law between the status of an employee and that of officer. The distinction is significant because it determines whether managers are covered by the labor law legislation, including those concerning employee dismissals. As a general principle, a person who manages or conducts a company is not considered an employee as such and therefore is not normally covered by standard labor law protection regarding dismissals. The manager of a French Limited Liability Company ("SARL"), the Managing Director and the members of the Board of Directors, Managing Board and Supervisory Board of French Limited Joint stock Company ("SA"), and the President of a French Simplified Limited Liability Company ("SAS") are all regarded as company officers. Nevertheless, managers can have regular employment contract with the company under certain conditions, depending on the type of company and the interests of the person involved.

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