What is the body of bondholders ?

An automatic and statutory grouping of bondholders

When a company issues bonds, all holders of the same issue are automatically grouped together to form a “body of bondholders”, an entity with legal personality, distinct from each individual investor. This mechanism, provided for in Articles L.228-46 et seq. of the Commercial Code, enables the common interests of bondholders to be defended collectively, rather than each acting separately.

How the body of bondholders makes its decisions

Decisions by the body of bondholders are, in principle, taken at a general meeting of bondholders. Since 2017, the issue contract may also provide for decisions to be taken by written consultation, including by electronic means. This format is better suited to private property debt, where bondholders are numerous and geographically dispersed.

The role of the representative of the body of bondholders

The body of bondholders is represented by one or more agents (the “representatives of the body of bondholders”) appointed either in the issue agreement or by the general meeting of bondholders. This representative is solely authorised to act on behalf of all bondholders to defend their common interests, including in court.

In the context of a transaction financed on Raizers, it is Raizers that acts as the representative of the body of bondholders.

Why this is important for you as an investor

In the event of difficulties with a campaign (delay, default on payment), you cannot take legal action alone and individually against the issuer to defend your common interests: the representative of the body of bondholders is the only party authorised to bring such proceedings, in the interests of all the bondholders concerned.

Updated on: 17/09/2026