1. The usufruct of controlling interests contributed for a ten years period to a corporation (French "societe anonyme"), constitutes an intangible asset for the corporation.

2. This usufruct may give rise to the constitution of a yearly allowance to a depreciation account, if it is normally foreseeable, at the time of the purchase by the company, that its positive effects on the company will end at a fixed date (Administrative Court of Poitiers, November 21, 1996, no 95-1701).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances.

For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/, Joel Fischer on 33/, or Laurent Borey on 33/(1) 55 61 10 10 or enter text search: "ARCHIBALD ANDERSEN Profile".

The members of ARCHIBALD ANDERSEN Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar and the Lyon Bar.