The French law relating to the taking of security on movable assets mostly dated back to the Napoleon Code enacted in 1804.
Rules concerning specific securities had been enacted since (for example the pledge assigning business receivables the charge on shares) but the general legal frame remained unchanged. Thus the modification recently introduced by the Ordinance of 23 March, 2006 (and the corresponding application decrees of 23 December, 2006) are of major importance for anyone interested in taking security on French assets, be it a bank or a firm dealing with French clients or purchasing French companies, through a leveraged buy-out or otherwise.
