Fond de Garantie des dépôts

The Fonds de Garantie des Dépôts (Deposit Guarantee Fund) was established by Act no. 99-532 dated 25 June 1999 on savings and financial security.

These legal measures were codified within the Code monétaire et financier (French monetary and financial code) in articles L 312-4 à 18 in respect of the "cash guarantee", articles L 322-1 à 4 in respect of the "securities guarantee" and in articles L 313-50 et 51 in respect of the "warranties guarantee.

The Fonds de Garantie des Dépôts is a legal entity under private law which governs three types of guarantees as follows: a guarantee of bank deposits, a guarantee of securities and a guarantee of warranties. It is governed by a Management Board under the control of a Supervisory Board.

A) Charter

The Charter of the Fonds de Garantie des Dépôts is set out in various articles of the Code monétaire et Financier L 312-9 to 14, L 322-4, L 313-50 and by CRBF regulation number 99-06 modified, art.10 à 14, 99-07 art. 11 to 13, 99-15 art.11 and 99-16 art.11 to 13.

Its statutory powers are further defined in internal rules. All these laws and rules can be wieved on the website.

The law has defined several elements of its charter, in particular the members and duties of the Supervisory Board and the Management Board. The Supervisory Board has several powers usually held by shareholders voting in a general meeting, which is not applicable in this case.

The internal rules, established by article L312-10 of the Code monétaire et financier (F-I-1), are prepared by the Supervisory Board. These rules are particularly important insofar as the law gives no specific definition of the legal operating procedures of the Fonds de Garantie des Dépôts which is neither an association, nor a limited liability company, nor a Groupement d'intérêt économique (French economic interet group). Its unique status is therefore precisely defined in the internal rules, which are retified by the French Finance Minister after approval by the Comité de la Réglementation Bancaire et Financière (French banking and finance committee - CRBF).

B) Supervisory Board

The Supervisory Board:

• Appoints and removes members of the Management Board,

• Appoints the auditors,

• Approves the financial statements which, following their approval, are sent to the French Finance Minister,

• Decides on all preventive engagements and terms and conditions for such engagements,

• Authorises any proceedings relating to the liability of the legal or shadow directors.

The Supervisory Board meets at least four times each year. Voting rights are in proportion to members'individual contributions.

The Supervisory Board comprise 14 members, all directors in the sense of article L 511-13 of the Code monétaire et financier for credit institutions or investment companies. Four members are assigned to the four institutions representing the hightest contributions to the Fonds de Garantie des Dépôts, and the other members are elected by the remaining members of the Fonds de Garantie des Dépôts (based on three committees: the committee for credit institutions belonging to a central body, 2 members; the committee for other credit institutions, 6 members and the committee for investment companies excl. credit institutions, 2 members). Their appointment is for a renewable term .

On 1st October 2009, the members are as follows:

There are no nominated replacements for members of the Supervisory Board. They can, however, be replaced by another director from the same institution.

C) Management Board

The Management Board comprises three members, each appointed for a renewable term of 4 years. The current members are as follows:

Chairman of the Management Board: Charles CORNUT

Member of the Management Board: Geoffroy de PREVOISIN

The Management Board prepares and submits the financial statements of the Fonds de Garantie des Dépôts to the Supervisory Board. It defines the communication procedures for information that must be sent to the customers of the members of the Fonds de Garantie des Dépôts.

The Chairman of the Management Board, whose appointment is approved by the French Minister, represents the Fonds de Garantie des Dépôts to third parties. He is a member of the Comité des Etablissements de Crédit et des Entreprises d'Investissement (French Committee for Credit Institutions and Investment Companies - CECEI) and may request to be heard by the French banking Commission.

The {Fonds de Garantie des Dépôts} has a legal committee whose recommendations are brought to the attention of the Supervisory Board. It is also a cash management committee whose recommendations are given in the quarterly report of the Management Board to the Supervisory Board; rules for application of the funds are set out in the internal rules.

The majority of the members and each of the chairmen of these committees are industry professionals.

D) Miscellaneous provisions

The Fonds de Garantie des Dépôts is subject to be audited by the "Inspection Générale des Finances" (French public audit commission) article L 312-9.