Procedures Guide

The Procedures guide allows entrepreneurs and decision-makers to have a reliable, precise and up to date overview of legal procedures and measures concerning commercial formalities to be undertaken. It is broken down into 6 sections in which you can find information and documentation required for formalities with Registry Offices at the Commercial Courts.

Meeting with the Presiding Judge at the Commercial Court, ad hoc mandate and conciliation

Preventive measures for difficulties can be initiated by the Presiding Judge of the commercial court or directly by the business owners themselves.

Thus, i after such difficulties have arisen or where other solutions such as Credit Mediation (for banking difficulties) have not succeeded, the directors may request a meeting with the Presiding Judge of the commercial court or may directly present a request for an ad hoc mandate or conciliation.

Interview with the Presiding Judge of the commercial court

Company directors may request an interview with the Presiding Judge of the commercial court having jurisdiction towards explanation of the difficulties (economic, financial, legal) which they have encountered.

Click here to obtain a printed form requesting an interview

To send your request, send this printed form, duly completed, to the following address: prevention@tribunauxdecommerce.fr

The Registry office of the competent commercial court concerned will contact you to arrange a meeting with the Presiding Judge or his representative .

Ad hoc mandate and conciliation

Two preventive procedures are available to companies encountering difficulties having the possibility of jeopardizing the continuity of their operations: the ad hoc mandate and conciliation, known as procedures for amicable settlement of company difficulties.
The ad hoc mandate or conciliation allows the company's director to negotiate its indebtedness under the aegis of either an authorised ad hoc representative or a mediator appointed by the Presiding Judge of the commercial court.

These procedures are confidential.

Who are the people appointed to these functions and what is the cost of their intervention?

Mediators are often legal administrators who have recognised experience in company recovery and negotiations with creditors (banks, tax and social welfare authorities, principal suppliers).

The company owner may propose the name of an authorised representative. He may also refuse the appointed professional.

At the time of appointment of the authorised representative, the cost of his intervention is determined in agreement with the company's owner.

What is the duration of these procedures?

Ad hoc mandate: the law does not set a fixed period to the ad hoc mandate; most often, the presiding judge assigns a renewable duration to the role of the ad hoc representative.

Conciliation: a maximum of 4 months, renewable for one month at the exclusive request of the mediator.

What are the objectives?

They are the same: to seek an agreement between the company and its primary creditors,allowing it to overcome its difficulties whilst taking due account of the interests of creditors. The solution therefore lies in negotiation within the framework of instalment repayment of debts.

What are the differences between the ad hoc mandate and conciliation?

These two procedures are distinguished by their implementation and process, even though they pursue the same objective.

The ad hoc mandate allows for the search, with the assistance of the authorised representative, of the best solutions for the company's restoration.

Texts: Articles L. 611-3 and L. 611-13 through L. 611-16; R. 611-18 through R. 611-21-1 and R. 611-47 through R. 611-50 of the Commercial Code.

An individual debtor or the legal representative of a legal entity, sends or remits its request for appointment of an ad hoc authorised representative to the presiding judge of the commercial court. This should be dated, signed, accompanied by the supporting documents, and sent to theregistry of the commercial court. After examination of the file, the presiding judge of the court or the deputy judge will summon, through the court clerk, the director to an interview so as to gather his observations.

Click here to receive a printed copy of the request for appointment of an ad hoc authorised representative

Conciliationallows for the implementation of aagreement(moratorium, loan renegotiation, etc.) when the company is not in suspension of payments or has not been so for over 45 days.

Legal texts: Articles L. 611-4 through L. 611-16; R. 611-22 through R. 611-52 of the Commercial Code.

The director sends or remits his request aimed at initiating a conciliation proceeding to the presiding judge of the commercial court. This should be dated, signed,accompanied by supporting documents, and sent to theregistry office of the commercial court. After examination of the file, the presiding judge or the deputy judge of the court will summon, through the court clerk, the director to an interview so as to gather his observations.

Click here to obtain a printed form requesting conciliation

- The agreement may be confidential: it is contained in an order of the presiding judge which has executory effect.

- The agreement may be subject to publication: at the request of the company owner, it is approved by a court judgement upon the condition that it does not prejudice the interests of non-signatory creditors.

This type of procedure is reassuring for company creditors and collaborators

In the event of that safeguarding proceedings, receivership or mandatory liquidation is subsequently opened, they would be held liable for any damages suffered as a result of the assistance granted within the framework of an ad hoc mandate or a conciliation proceedings (except in cases of fraud, management interference or if the guarantees taken in return for this assistance are disproportionate).

Download

Type Title Document name Download
Document template Request for a meeting with the Presiding Judge at the Commercial Court Télécharger
Document template Request for appointment of an ad hoc authorised representative Télécharger
Document template Request for conciliation Télécharger