Commercial Code — 15 septembre 1807

The Commercial Code codified companies, bills of exchange, commercial courts and bankruptcy, completing the Civil Code in the sphere of business. It enshrined freedom of enterprise while punishing fraudulent bankruptcy severely. With the Code of Civil Procedure of 1806 and the Penal Code of 1810, it completed the Napoleonic work of codification.

The second pillar of the codes

The Civil Code of 1804 had settled property, family and contract; it said almost nothing about trade. Merchants went on living under Colbert's ordinances — that of 1673 for land commerce, that of 1681 for the sea — which the Revolution had left in place for want of anything better.

Promulgated on 15 September 1807 and in force from 1 January 1808, the Commercial Code filled the gap in six hundred and forty-eight articles divided into four books: commerce in general, maritime commerce, bankruptcy, and commercial jurisdiction.

Companies, bills of exchange, bankruptcy

The first book laid down company law: partnership, limited partnership, and the joint-stock company, the last subject to government authorisation — freedom of enterprise remained supervised. It also codified the bill of exchange and the promissory note, credit instruments without which international trade does not work.

The treatment of failure was severe: the bankrupt was divested, and fraudulent or simple bankruptcy fell under the criminal law. Credit protected itself by placing the burden of default on the debtor.

Commercial courts and the export of the code

The fourth book confirmed an institution of the Ancien Régime that the Revolution had kept: the commercial courts, where elected merchants judge merchants. France is one of the few countries to have preserved that form to this day.

With the Code of Civil Procedure of 1806 and the Penal Code of 1810, the Commercial Code completed the work of codification. Carried abroad by French armies and administrations, it would serve as the basis of commercial law in Belgium, the Netherlands, Italy, Spain and, from there, in much of Latin America.