Created in 1962, the common agricultural grouping (GAEC) aims to allow farmers to pool their means of production into a single structure while retaining their management power over their operation. This preserves the character of a family farm.
Summary
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- Establishment of a
- partner
- Contributions
- Share capital
- Accreditation
of the REAG
- Operation of
- the
- management
- End of
- benefits
of the REAG
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of the REAG
The creation of a GEA
The Partners
The idea behind this condition is that operators should pool their work.
To do this, partners must all have the material capacity, legal capacity (related to the control of structures), and sufficient availability to participate in the work required by the company’s activities.
Since there is no single member CGAE, at least two partners are required. In the event of the death or departure of a partner, the GAEC must regularize its situation, otherwise it will lose its approval.
Only individuals can be members of a GAEC. Minors, even if emancipated, cannot do so because participation in the activity is necessary. On the other hand, there is no maximum age requirement. However, the person must be able to carry out their activity. Thus, age as such is not an obstacle, but attention must be paid to the potential onset of physical or mental incapacity.
Furthermore, two spouses cannot be partners in a CACAE; they can be members of it, provided they are not the only partners.
If a secondary activity is carried out, it must not interfere with the partner’s obligation to participate effectively in the operation. Additionally, partners should not be too geographically distant. The distance between different farms must be reasonable; it can be evaluated differently depending on the area. Example: In the case of lowlands, the distance should not exceed 20 km between farms.
In the event that a partner becomes disabled or wishes to suspend their activity, they may request a temporary work exemption from the GAEC Assembly, which will be brought to the attention of the Accreditation Committee.
Contributions
The GAEC is an operating company, meaning it is a company focused on the services provided by the partners, called members. Contributions can be made in cash, in kind (description and detailed assessment of contributions attached to the statutes), and in industry (experience distinct from that of the GAEC).
Share Capital
Must not be less than €1,500. The variability of the capital can be predicted.
Shares can be transferred under the common law of civil companies. But be careful, the assignee must have the capacity to participate in the operation.
Regarding remuneration, no special provisions are provided: no remuneration is required based on the amount of contributions. Since GAECs are an egalitarian system, remunerations must be balanced.
Accreditation
Approval is granted by departmental approval committees composed of a prefect, the departmental director of agriculture and forests, the director of the general labor directorate, a representative of the departmental tax directorate, and four farmers, one of whom is appointed by the departmental agricultural chamber. Finally, there is also a national accreditation committee.
This involves sending a request for recognition of accreditation accompanied by drafts of the statutes and a document indicating the individuals participating in the grouping. It is possible for committee members to hear from GAEC members. The Committee has a period of three months from the receipt of the request to make a decision. In the absence of a response, this does not equate to tacit approval. The founders must, within two months, submit the matter to the national accreditation committee, which has a period of three months to respond. The lack of response constitutes implicit approval.
The authorization can be complete or subject to modifications to the LCEE project. The reasons for rejecting the request must be indicated, as the rejection can be appealed to the national committee within two months of notification.
Maintaining accreditation requires that the composition of the GEAC be maintained. Therefore, the ministerial committee should be informed of any changes.
If, during the lifespan of the GAEC, the conditions are no longer met, in this case, the accreditation may be revoked. It is retroactive to the day of the regularization request. Anyone who is aware of changes made to the CAEC can inform the Committee.
The operation of the CAEC
Obligations to be respected
The most important is active participation in the operation. This limits the social purpose of the grouping in that GAECs cannot be used to distribute the actual production of each farm.
Equality among partners must also be respected: the amount of remuneration is at least equal to the minimum wage, and the maximum amount must not exceed six times the minimum wage. Remuneration must occur independently of any subordination, and each retains their capacity as the head of the operation.
Management
The company must have a director appointed either by the statutes or by the Assembly. They must be chosen from among the partners.
There is also an associated assembly.
Within the framework of GAECs, the is limited. It is equal to twice the contributions of each partner.
The end of GAECs
It is possible to end a relationship in the GAECs without dissolving it, for example, when a partner wants to leave the GAEC, this is possible if they obtain the agreement of the partners according to the previously indicated majority rules. This is also possible with the authorization of the IG in the absence of a vote.
However, in the case of behavior that harms the operation of the GAECs, the partner may be excluded from the grouping if this is provided for in the statutes. The withdrawal of the partner will require the ACEE to reimburse the shares.
Additionally, it is possible for the LCEE to be dissolved for reasons common to any company. However, the death of a partner does not lead to the dissolution of the group; their heir can thus become a member of said group. The applicant will then have to comply with the conditions that lead to a new application for approval. In the event of the dissolution of the GEAC, partners can reclaim their contributions in kind by counting them in advance against their share, the contributions being valued on the day of liquidation.
Advantages
— Allows for true pooling and mutual assistance among farmers, facilitating their work and reducing their expenses. In short, the possibility of doing things that are unimaginable for these farmers alone. — During the first three years of operation, GAECs will be able to obtain individual loans.
Disadvantages
— To sell their shares, the partner must obtain the agreement of all. — The departmental committee imposes strict control over each of its groupings, these groups due to their approval.
become a member of said group. The applicant will then have to comply with the conditions that lead to a new application for approval. In the event of the dissolution of the GEAC, partners can reclaim their contributions in kind by counting them in advance against their share, the contributions being valued on the day of liquidation.
Advantages
— Allows for true pooling and mutual assistance among farmers, facilitating their work and reducing their expenses. In short, the possibility of doing things that are not conceivable for these farmers by themselves. — During the first three years of operation, GAECs will be able to obtain individual loans.
Disadvantages
— To sell their shares, the partner must obtain the agreement of all. — The departmental committee imposes strict control over each of its groupings, these groups due to their approval.
Tag : create a GAEC