{"id":2341,"date":"2026-04-27T18:26:10","date_gmt":"2026-04-27T16:26:10","guid":{"rendered":"https:\/\/www.alkeom.law\/?p=2341"},"modified":"2026-04-27T18:27:54","modified_gmt":"2026-04-27T16:27:54","slug":"agm-2026-french-companies-how-to-prepare-the-management-report-on-the-annual-accounts","status":"publish","type":"post","link":"https:\/\/www.alkeom.law\/en\/agm-2026-french-companies-how-to-prepare-the-management-report-on-the-annual-accounts\/","title":{"rendered":"[AGM 2026] French Companies: How to Prepare the Management Report on the Annual Accounts?"},"content":{"rendered":"\n
\n
\"Alkeom<\/figure>\n<\/figure>\n\n\n\n

As the annual general meeting season is in full swing, we offer a series of articles to help officers and shareholders better understand the rules relating to the approval of French SAS and SARL\u2019s annual accounts for SAS and SARL, as well as the obligations arising from them. Fourth round of Q&As.<\/em><\/p>\n\n\n\n

What is the management report?<\/h2>\n\n\n\n

The management report is an annual document prepared by the company’s legal representatives for the benefit of shareholders and other stakeholders. Drawing on the annual financial statements, it provides a comprehensive and analytical overview of the company\u2019s financial position, performance, key risks and future prospects.<\/p>\n\n\n\n

\n\n\n\n
<\/div>\n\n\n\n

We secure the legal compliance of your corporate decisions and of your annual accounts approval.<\/h3>\n\n\n\n
\n
Get in Touch<\/a><\/div>\n<\/div>\n\n\n\n
\n
Discover Our Corporate Services Solutions<\/strong><\/a><\/div>\n<\/div>\n\n\n\n
<\/div>\n\n\n\n
\n\n\n\n

Must all companies prepare a management report?<\/h2>\n\n\n\n

As a general rule, all French business companies are required to prepare a management report. However, limited liability companies (Soci\u00e9t\u00e9 \u00e0 responsabilit\u00e9 limit\u00e9e<\/em> \u2013 SARL) and simplified joint-stock companies (Soci\u00e9t\u00e9 par actions simplifi\u00e9e<\/em> \u2013 SAS) qualifying as micro or small businesses are exempt from this requirement.1<\/a><\/sup> These exemptions apply to companies that do not exceed two of the following three thresholds at the end of the financial year:<\/p>\n\n\n\n

<\/td>Balance sheet total<\/strong><\/td>Net turnover<\/strong><\/td>Average workforce<\/strong><\/td><\/tr>
Micro-business<\/strong><\/td>EUR 450,000<\/td>EUR 900,000 <\/td>10 employees<\/td><\/tr>
Small business<\/strong><\/td>EUR 7.5 million<\/td>EUR 15 million<\/td>50 employees<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

This exemption is not available to certain companies, especially those operating in the banking, financial or insurance sectors.2<\/a><\/sup> Furthermore, the bylaws may provide for the preparation of a management report, even where the applicable thresholds are not met.<\/p>\n\n\n\n

Who is responsible for drafting the management report?<\/h2>\n\n\n\n

The management report is prepared by the general manager(s) in a SARL and by the president in a SAS. In SAS companies, the bylaws may further require the involvement of general directors and other governance bodies (e.g., a strategic committee or a board of directors).<\/p>\n\n\n\n

When must the management report be prepared? Are there statutory deadlines?<\/h2>\n\n\n\n

The preparation timeline is subject to several legal requirements:<\/p>\n\n\n\n