Ad hoc mandate
Verified 15 May 2022 - Legal and Administrative Information Directorate (Prime Minister)
The ad hoc mandate is a preventive procedure for resolving difficulties for companies not in termination. It allows the company to rearrange its debts in secret, without informing employees and third. The use of the ad hoc mandate pays off. An ad hoc exit mandate with limited duration and cost is foreseen for companies of up to 10 employees.
What applies to you ?
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General case
What companies?
- Micro entrepreneurs
- Individual entrepreneurs engaged in commercial, craft or agricultural activities for the professional part of their assets
- Businesses
- Professional
What kind of difficulties?
These may include:
- Economic difficulties (e.g. loss of a market)
- Financial difficulties (e.g. late payment of suppliers, non-payment of sums due by the customer, difficulty of repayment of a credit)
- Social difficulties (e.g., partner dispute)
Companies of up to 10 employees and financial difficulties due to the health crisis
There is an ad hoc exit mandate for individual companies and businesses that meet the following 2 conditions:
- They employ no more than 10 employees
- They face financial difficulties due to the health crisis
This ad hoc mandate may not exceed 3 months.
Its cost is capped at €1,500HT: titleContent for companies with less than 5 employees and €3,000HT: titleContent for companies with 5 to 10 employees.
Please note
this ad hoc mandate for recovery shall apply until 31 December 2022.
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Commercial or craft activity
To apply for the appointment of an ad hoc agent, you must complete the following document and submit it to the president of the commercial court of the company's headquarters.
Request for the appointment of an ad hoc representative
The request for the appointment of an ad hoc representative to the President of the Tribunal shall be accompanied by the following documents:
- Status claims and debts with a schedule and a list of key creditors
- Active and liability of security and off-balance sheet commitments
- Annual accounts
- Funding table, status of realisable and available assets (excluding operating values) and liabilities for the last 3 fiscal years (if these documents were prepared)
- Certificate of honour certifying no statement of termination of payments
Upon receipt of this request, the President of the Tribunal receives the contractor or officer and collects his comments.
At the end of the interview, if the President of the Court finds the application to be valid, he shall an order for appointment of the ad hoc representative.
FYI
the appointment of the ad hoc representative is not published.
Liberal activity
To apply for the appointment of an ad hoc representative, you must complete the following document and hand it over to the president of the court of the company.
Request for the appointment of an ad hoc representative
Who shall I contact
The request for the appointment of an ad hoc representative to the President of the Tribunal shall be accompanied by the following documents:
- Status claims and debts with a schedule and a list of key creditors
- Active and liability of security and off-balance sheet commitments
- Annual accounts
- Funding table, status of realisable and available assets (excluding operating values) and liabilities for the last 3 fiscal years (if these documents were prepared)
- Certificate of honour certifying the absence of a statement of termination of payments.
Upon receipt of this request, the President of the Tribunal receives the contractor or officer and collects his comments. At the end of the interview, if the president of the court
judge the application to be valid an order for appointment of the ad hoc representative.
FYI
the appointment of the ad hoc representative is not published.
If he accepts the request, the President of the Court shall freely appoint the ad hoc representative. He is often a judicial administrator. The President of the Tribunal shall determine the following in the order for appointment:
- Mission Purpose. Most often, it is to help the contractor or manager negotiate an agreement with his or her principal creditors in order to obtain debt rescheduling.
- Duration of the mandate (usually for 3 months, renewable several times)
- Conditions for the remuneration of the agent
The decision appointing the ad hoc representative shall be communicated by registered letter with acknowledgement of receipt to the contractor or officer who requested it.
It is also communicated for information to the account commissioner.
This decision shall not be communicated to the Social and Economic Committee (ESC) where it exists.
FYI
the individual director or contractor may propose the name of an ad hoc representative the president of the tribunal. The appointment of the ad hoc representative is not published.
The purpose of the ad hoc agent is to avoid the cessation of payments.
However, nothing can be imposed on creditors or company partners.
During his tenure, the leader continues to lead and manage his company alone.
2 situations arise:
- Success of the ad hoc representative's mission (e.g. signing an agreement between creditors and company)
- Failed to negotiate ad hoc proxy. In this case, the company can move towards a conciliation.
FYI
the individual contractor or officer may at any time terminate the mission of the ad hoc agent.
To small and medium-sized and micro-entreprises, do you have a business project, a difficulty or a question ?
Quick and simple public service: you will be contacted over the phone by one of our experts.
Speak with an advisor on Place des Entreprises- Trade Code: Article L611-3Appointment of the ad hoc representative
- Trade Code: items R611-18 to R611-21Appointment and duties of the ad hoc representative
- Request for the appointment of an ad hoc representative
Document template