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10/12/2013 PROFILE > Expert-comptable , Commissaire aux comptes

Extension of bankruptcy proceedings requires a professional hearing

In the event of safeguarding proceedings being initiated, as well as judicial liquidation or administration against a professional liberal debtor (subject to a legislative or regulatory framework for which the title is protected), the Commercial Code makes provision that the Court may only rule after having heard or duly called the professional order or authorities with competence thereover.
In those particular instances of the proceedings being rolled out to one or more persons due to confusion over their estate with that of the debtor or the fictitious nature of the legal entity, the Court of Cassation has issued a ruling of 5 November 2013. This ruling sets out the same obligation for the Court. Indeed, it cannot extend judicial liquidation, as declared over a company which deals in chartered accounting and auditing, to any of its subsidiaries, without having previously convened the chair of the order of chartered accountants and chair of the company of auditors or gathered their observations. This obligation is imposed even if the latters already operate as auditors in the bankruptcy proceedings initiated against the parent company.