Which companies are exempt from producing a management report?

Historically, only SASUs and EURLs whose sole member — a natural person — personally assumed management or the presidency were exempt from producing a management report.

The Act of 10 August 2018 broadened the scope of this exemption. Now, all commercial companies, whatever their form, meeting the definition of small businesses are exempt from producing a management report (with a few exceptions we shall see).

Companies concerned

Small businesses are those which, at the close of the last financial year, do not exceed two of the following three thresholds:

• Balance sheet total: €4,000,000

• Net turnover: €8,000,000

• Average headcount: 50 employees

References

Article L. 123-16 du Code de commerce

Article D. 123-200 du Code de commerce

Companies excluded

Even when they qualify as small businesses, the following entities remain required to produce a management report:

• Financial institutions

• Insurance and reinsurance undertakings

• Pension funds

• Mutual societies

• Companies making appeals to public generosity

• Companies whose securities are admitted to trading on a regulated market

• Companies whose business consists in managing equity interests or securities

References

Article L. 123-16-2 du Code de commerce

👉 Worth knowing: Alex handles the entire approval of the annual accounts procedure for your company and checks whether you are exempt from producing a management report