HERMÈS - 2018 Registration document

Information on the Company and its share capital

Presentation of Hermès International and Émile Hermès SARL

PRESENTATION OF HERMÈS INTERNATIONAL AND ÉMILE HERMÈS SARL

7.1

PRESENTATION OF HERMÈS INTERNATIONAL

The rules governing the operation of a société en commandite par actions (partnership limited by shares) are the following: s s the Active Partner or partners, who carry on the business, are jointly and severally liable for all the Company’s debts, for an indefinite period of time; s s the Limited Partners (or shareholders), who contribute capital, are liable in this capacity, as shareholders, only up to the amount of their contribution; s s the same party may be both an Active Partner and a Limited Partner; s s a Supervisory Board is appointed by the Ordinary General Meeting as a supervisory body (Active Partners, even if they are also Limited Partners, cannot vote on the appointment of Supervisory Board members); s s one or more Executive Chairmen, designated from among the Active Partners or from outside the Company, are chosen to manage the Company. Limited Partners: s s appoint the Supervisory Board members, who must be selected from among the Limited Partners, and the Statutory Auditors, at the Shareholders’ General Meetings; s s vote on the accounts approved by the Executive Management; and s s appropriate earnings (including the distribution of dividends). The main Limited Partners (shareholders) are listed on page 342. The Active Partner Since 1 April 2006, Émile Hermès SARL, represented by its Executive Management Board, has been the sole Active Partner of Hermès International. The Active Partner: s s has the authority to appoint or revoke the powers of any Executive Chairman, on the reasoned opinion of the Supervisory Board; s s takes the following decisions for the Group, on the Supervisory Board’s recommendation: • • strategic options, • • consolidated operating and investment budgets, and • • any proposal submitted to the General Meeting pertaining to the appropriation of share premiums, reserves or retained earnings; s s may formulate recommendations to the Executive Management on any matter of general interest to the Group; s s authorises any loans of Hermès International whenever the amount of such loans exceeds 10% of the amount of the consolidated net worth of the Hermès Group, as determined based on the consoli- dated financial statements drawn up from the latest approved accounts (the “Net Worth”); 7.1.1.4 7.1.1.3 Limited partners (shareholders)

7.1.1

7.1.1.1 Role Hermès International is the Group’s parent company. Its purpose is: s s to define the Group’s strategy and its focuses for development and diversification; s s to oversee the operations of its subsidiaries and to provide corporate, s s to protect and defend its trademarks, designs, models, and patents; s s to maintain a documentation centre and make it available to the subsidiaries; s s toascertainthatthestyleand imageofeachbrandname isconsistent throughout the world and, for this purpose, to design and orchestrate advertising campaigns, actions and publications to support the various business activities; s s to provide guidance in design activities and to ensure that the Hermès spirit is consistently applied in each business line. Hermès International derives its funds from: • • dividends received from subsidiaries, • • royalties from trademarks, licensed exclusively to Group subsidia- ries, namely, Hermès Sellier, Comptoir Nouveau de la Parfumerie, La Montre Hermès and Faubourg Italia (amounts concerning the 2018 financial year are presented on page 397). Hermès brands, which belong to Hermès International, are protected by trademarks in many countries, for all categories of products in each of the Group’s business sectors. Hermès International’s scope of consolidation encompasses 132 sub- sidiaries and sub-subsidiaries. A simplified presentation of the Group appears on page 32. Legal form Hermès International was converted into a société en commandite par actions (partnership limited by shares) by a decision of the Extraordinary General Meeting held on 27 December 1990, in order to preserve its identity and culture and thus ensure its sustainability over the long term, in the interests of the Group and all shareholders. In this legal form, the share capital is divided into shares and there are two classes of partners: one or more Active Partners, who actively engage in operating the business and are jointly and severally liable for all the Company’s debts for an indefinite period of time, and Limited Partners, who are not actively engaged in the business and are liable only up to the amount of their contribution. 7.1.1.2 financial, legal and commercial assistance; s s to manage the Group’s real estate assets;

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2018 REGISTRATION DOCUMENT HERMÈS INTERNATIONAL

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