Behind the scenes at the CCI: how do the administration, elections and funding work?

Having explored the history, legal nature and varied missions of the Chambers of Commerce and Industry (CCI), it is essential to understand how these institutions operate on a day-to-day basis. Who makes the decisions? How are their directors appointed? What is the status of the thousands of people who work there? And, not least, where do the resources to fund their activities come from? This article takes you through the inner workings of the CCIs, detailing the electoral system that ensures their democratic legitimacy, their administrative organisation, the special status of their staff and their funding mechanisms. For an overview of the network of Chambers of Commerce and IndustrySee our full guide.

Who elects the members of the CCIs? The detailed electoral system

The legitimacy of the CCIs is based on the fact that they are administered by business leaders elected by their peers. The electoral system is therefore a cornerstone of their operation.

Voters in each territorial constituency are divided into three main categories occupational categories trade, industry and services. Within these categories, there may be a finer breakdown into sub-categories, often based on the size of the business (number of employees). Voting takes place within the constituency of the Territorial Chamber of Commerce and Industry (CCIT), even when electing representatives to the Regional Chamber of Commerce and Industry (CCIR).

Who exactly are these voters? The French Commercial Code (article L. 713-1) distinguishes between two main groups:

1. Individual voters Registered traders: These are mainly traders registered with the Registre du Commerce et des Sociétés (RCS), heads of craft businesses who are also registered with the RCS (dual registration), and their collaborating spouses (declared with the RCS and with no other professional activity). There are also certain specific professions, such as merchant navy captains commanding a French ship, or maritime and civil aviation pilots, subject to certain conditions.
2. Voters through a representative Legal entities. Mainly commercial companies (SA, SARL, SAS, etc.) and public industrial and commercial establishments (EPIC) whose head office is in the constituency. Companies (natural or legal persons) with a significant secondary establishment in the constituency are also eligible to vote via a representative, even if their registered office (or their own voting rights) is elsewhere. Foreign companies with an establishment registered in France also vote via a representative.

A company (natural or legal person) does not have just one vote via its principal representative. It benefits from additional representatives according to the number of employees in the constituency: one more between 10 and 49 employees, and a second between 50 and 99 employees (beyond that, the number no longer increases).

These representatives appointed by the companies must be managers (CEO, managing director, member of the board of directors, management board, etc.) or, failing that, executives with commercial, technical or administrative management responsibilities.

To be eligible to vote, all these voters (whether individuals or representatives) must meet the general conditions for the right to vote (age, enjoyment of civil rights - set out in article L. 2 of the Electoral Code), with the notable exception of the condition of French nationality, which is not required. They must also not be subject to certain prohibitions or disqualifications, in particular those relating to personal bankruptcy or criminal convictions prohibiting the exercise of a commercial or management activity (as provided for in Book VI of the Commercial Code or by article 131-27 of the Criminal Code).

Who can be elected? Conditions of eligibility and mandate

To be elected as a member of a CCIT or CCIR, you must first be a voter in the corresponding constituency and be at least 18 years old. You also need to have a certain length of service: the individual voter must have been registered for at least two years (in certain cases specified by decree), and the representative must belong to a company that has been in business for at least two years.

If an elected member ceases to fulfil these conditions of eligibility (for example, if he ceases his activity for more than six months without justification), he must resign. If they fail to do so, the Prefect may declare them to have resigned automatically.

Le mandate of elected members is five years. An important rule limits the term of office of the president of an institution in the network (CCI France, CCIR, CCIT, etc.) to fifteen years maximumfor all terms. A Chairman who reaches this limit during his term of office may, however, complete it.

The number of seats varies according to the type and size of the chamber (between 24 and 100 for a CCIT, between 30 and 120 for a CCIR, figures set by decree). The distribution of seats between professional categories (commerce, industry, services) and sub-categories takes into account economic weight (tax bases), the number of companies and the number of employees. However, no category may hold more than half of the seats.

A rule of parity applies to the election of CCIR members: the titular candidate and his or her alternate must be of different sexes. It should be noted that members elected to the CCIR are automatically also members of the CCIT of the district in which they were appointed. If you lose your mandate in one, you lose your mandate in the other.

How do the elections work?

The electoral lists are prepared by a commission chaired by the judge responsible for supervising the RCS and are subject to the rules on publicity and complaints set out in the Electoral Code.

Each elector has as many votes as he fulfils the conditions for being an elector (for example, a sole trader who is also the manager of a limited liability company may vote twice). Voting is by first-past-the-post, multi-member constituency system. The candidates with the most votes are elected. In the event of a tie, the oldest candidate wins.

La the main voting method is electronic. Postal voting may be used for by-elections outside the general renewal period.

The ballot is organised by the administrative authority (Prefecture) with the support of the CCIs. A commission chaired by the Prefect ensures that the elections are properly conducted and announces the results. Any appeals against the elections are brought before the administrative court, as for municipal elections. An elected official whose election is contested remains in office until the court has given a final ruling.

Internal organisation: who runs the CCI?

Each public institution of the network (CCI France, CCIR, CCIT) is based on a classic governance structure, sometimes reminiscent of that of associations, but adapted to their public status:

• Annual General Meeting Board: This is the supreme decision-making body. It brings together all the full elected members (with voting rights) and associate members (qualified individuals appointed by the General Meeting, in an advisory capacity). It sets the broad policy guidelines and action programme, votes on the budget, approves the accounts and adopts the internal rules. It may delegate certain day-to-day management powers to other bodies.
• The Office Board: Elected by the General Meeting after each five-yearly renewal, the Board is the restricted executive body. It comprises at least a chairman, vice-chairmen (representing the three professional categories), a treasurer, a deputy treasurer and one or two secretaries. Its role is to prepare the deliberations of the General Meeting and monitor the implementation of its decisions. Election is by absolute majority in the first two rounds, then by relative majority.
• The Chairman President: Elected by the General Meeting (with specific rules governing the relationship between the CCIT and CCIR presidencies), the President is the institution's legal representative. He chairs the general meeting and the executive committee. He is theauthorising officer expenditure and income, i.e. he/she decides on the commitment of funds and issues payment or collection orders. He is responsible for the general management of the Chamber.

One specific point concerns Treasurer. Elected by the General Meeting, he or she is responsible for keeping the accounts, executing expenditure and income transactions (following a decision by the authorising officer), and managing the cash position. The law (article R. 712-13 of the French Commercial Code) emphasises the importance of separation of functions between the authorising officer (the Chairman) and the accounting officer (the Treasurer)This is a fundamental principle of public management. However, a particular feature of the CCI system is that the treasurer, although performing accounting functions, does not have the status of a public accountant in the strict sense (like a treasurer-payeur général). The Conseil d'Etat confirmed this in 2008, stating that the accounting and financial organisation of the CCIs is specific. This in no way detracts from the rigour expected in the management of public funds.

Lastly, to ensure that they are able to carry out their duties with peace of mind, elected representatives (Chairman, Treasurer, elected representatives with delegated powers) benefit from a functional protection. The establishment must protect them (by covering legal costs, for example) if they are the subject of criminal proceedings for acts that cannot be detached from their duties, or if they are the victim of violence, threats or insults because of their mandate.

CCI staff: a changing hybrid status

Historically, the staff of the CCIs, even if they did not have tenure, and were involved in the performance of a public administrative service, were considered as belonging to the public law. However, these employees were not civil servants in the traditional sense, but were governed by an autonomous statute stemming from the law of 10 December 1952, established by joint committees. The Conseil d'Etat has repeatedly confirmed this principle, while reiterating that the permanent posts of a public administrative establishment should ideally be filled by permanent staff.

However, the 2019 PACTE Act introduced a major change, set out in Article L. 710-1 of the French Commercial Code. Henceforth, notwithstanding the law of 1952, the CCIs (CCI France, CCIR and, by delegation, CCIT) will recruit their new staff under private law status. These employees are governed by the French Labour Code and by a national collective agreement negotiated at CCI France level and approved by the supervisory ministry.

We are therefore witnessing a coexistence of two statuses within the CCIs: public-sector employees recruited before the reform under the 1952 status, and private-sector employees recruited since. Management of general human resources policy and collective bargaining are the responsibility of CCI France, while recruitment and day-to-day management are often carried out by the CCIRs, which then assign staff to the various chambers in their region.

How are the CCIs financed?

The financing of CCI activities comes from several sources:

• Taxes earmarked by law The main resource is the Room tax (TFC)provided for in article 1600 of the General Tax Code. This tax is itself made up of two components: an additional tax on the Cotisation Foncière des Entreprises (CFE) and an additional tax on the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE). Proceeds from the CFT are collected at national level, allocated by CCI France to the CCIRs (after deducting its share), and then by the CCIRs to the CCIT/CCIDs within their jurisdiction. This tax is specifically intended to finance public service missions of the CCIThis does not include their commercial activities in competition with each other. Its use is monitored via the Agreements of Objectives and Means.
• Apprenticeship tax The CCIs are authorised to collect the apprenticeship tax (and the additional apprenticeship contribution - CSA) paid by companies to finance initial technological and vocational training, particularly that provided in their own training centres.
• Own resources Revenues: Chambers of Commerce and Industry can also generate revenues from the sale of certain services (as long as they are provided in compliance with competition rules), the management of facilities (ports, airports, convention centres, etc.), or dividends from subsidiaries or shareholdings that they may hold.
• Other resources They may receive public grants (from the State or local authorities), as well as donations and legacies.

To ensure transparency and compliance with competition rules, particularly European competition rules, each Chamber of Commerce and Industry must keep a register of its activities. cost accounting to enable a clear distinction to be made between the use of public funds (from taxes) and resources from potentially commercial activities. These accounts are available to the supervisory and control authorities.

Lastly, the CCIs may, with the agreement of their supervisory authority, participate in the capital of companies (civil or joint-stock) or public or private interest groups, if the purpose of these structures falls within the scope of their missions.

Understanding these internal workings - elections, administration, personnel, finance - completes the overview of the CCIs and gives a better grasp of how these key players in the local economy operate in the service of businesses.

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Sources

• Commercial Code, in particular articles L. 710-1, L. 712-1 et seq., L. 713-1 to L. 713-15, R. 711-32-1, R. 712-1 et seq., R. 712-13, R. 713-1 et seq.
• General Tax Code, in particular articles 1599 ter A, 1600, 1609 quinvicies.
• French Labour Code, in particular article L. 6241-1.
• Electoral Code, in particular articles L. 2, L. 6, L. 20.
• Penal Code, in particular article 131-27.
• Law no. 52-1311 of 10 December 1952 relating to the compulsory establishment of statutes for the administrative staff of chambers of agriculture, chambers of commerce and chambers of trade.
• Law no. 2019-486 of 22 May 2019 on the growth and transformation of businesses (PACTE).
• Relevant administrative case law (e.g. CE, opinion, 16 June 1992, no. 351654; CE, opinion, 15 March 1996, no. 358801; CE 10 Apr. 2013, no. 356298; CE 27 June 2008, no. 296983).