THE I,EGAI< REGIME OF THE COMMERCIAL SOCIETIES If 



able, according to the forms laid down, to take decisions, which are fully 

 binding and which the meeting may order its oihcers to carry out. 



The law lays down in fact that the board of management and the com- 

 missioners may call a general meeting of bondholders, and that they are 

 bound to do so at the request of a number of bondholders possessing bonds 

 representing one fifth of the amount in circulation. 



This general meeting has the right : (i) to receive depositions for the 

 purpose of according the bondholders special guarantee, or modifying or 

 cancelling guarantees previously established; (2) to postpone the date of 

 maturity of one or more classes of interest, to consent to the reduction 

 of the rate of interest or the modification of the conditions for payment ; 

 {3) to prolong the period for extinction of debt, to suspend the payment 

 to sinking fund and to modify the conditions of payment ; (4) to allow the 

 credits due on bonds to be substituted by shares (actions) ; (5) to decide upon 

 action for the defence of the common interest ; (6) to appoint one or more 

 officers to execute the decisions taken in accordance with numbers i to 5, 

 and represent the body of bondholders in all suits relating to the reduc- 

 tion or cancellation of mortgages registered. 



The decisions of the meeting shall be binding if approved by holders 

 of as many bonds as are required to make up two thirds of the amount in 

 circulation, in the cases contemplated under nos. i to 5, and by a mere 

 majority in the case contemplated in no. 6. 



At the suit of those concerned, a curator shall be appointed to represent 

 the whole body of bondholders in proceedings in connection with the paying 

 off of a mortgage or the expropriation of the real estate mortgaged. The 

 appointment is made by the president of the Civil Court. 



Limited liability societies may not issue bonds to be redeemed by being 

 drawn for, at a rate above the rate of issue, unless the bonds bear interest 

 at least of 3 %, are redeemable at the same amount and that the yearly 

 instalments of sinking fund and interest remain invariable for the whole 

 period of the loan. 



The amount of these bonds may in no case exceed that of the paid up 

 capital. 



Besides, there is always a condition left to be understood in contracts 

 of loans realised under the form of issue of bonds, in case one of the parties 

 does not fulfil his engagements : in that case, the contract is not cancelled 

 of itself, but the party suffering by the breach of contract may force the 

 other to keep his engagements or may ask for cancellation. 



5. Societies en [commandite limited by shares. 



These societies differ from ordinary societies en commandite in that 

 their capital is divided into shares, bearing signature of the managers and 

 two commissioners. Each society has a title consisting of the names of 

 one or more responsible members, to which a special designation may be 



