Ad hoc mandate

Verified 01 January 2025 - Directorate for Legal and Administrative Information (Prime Minister)

The ad hoc mandate is a preventive measure that allows the company not in cessation of payments to restore his situation quickly. It can thus negotiate amicably with its creditors (tax, social security, suppliers, bankers, lenders, etc.). Use of this procedure confidential is paying.

All companies (including micro-entrepreneurs), regardless of size or turnover, can use the ad hoc mandate. They must not be in cessation of payments .

The company may use the ad hoc warrant when it is in one of the following situations:

Economic difficulties (e.g. loss of a market)
Financial difficulties (for example, late payment of social security contributions or taxes, difficulty in repaying a credit)
Social difficulties (for example, disputes between partners)

Warning

If the company has been in default for less than 45 days, it may use the conciliation procedure.

The company must apply to the court for the appointment of an ad hoc agent.

The competent court depends on the nature of the activity and the place of practice:

FYI

Only the leader of the company in difficulty (individual contractor or legal representative of the business) may request the appointment of an ad hoc representative.

Commercial or craft activity

We need to complete the application for designation an ad hoc representative of the following:

Request for the appointment of an ad hoc representative

This form, dated and signed, must be accompanied by subsequent documents :

Kbis Extract or unique identification number (Siren)
Status of debts and debts with a schedule and a list of principal creditors
Active State and indebted of collateral and off-balance sheet commitments
Annual accounts
Financing schedule, statement of assets available and realizable (excluding operating values) and liabilities due in the last 3 financial years (if these documents have been drawn up)
Attestation on honor certifying that there is no cessation of payments

This application must be filed or sent in 2 copies the Commercial Court or the Economic Activities Court (EAT).

Indeed, since the 1^er january 2025, the commercial courts of 12 cities are replaced by economic activity courts (EATs) for the handling of amicable proceedings (ad hoc mandate, conciliation) and collective proceedings. The courts of the following cities are concerned: Avignon, Auxerre, Le Havre, Le Mans, Limoges, Lyon, Marseille, Nancy, Nanterre, Paris, Saint-Brieuc and Versailles.

The Ministry of Justice provides a simulator to know the competent court:

Know the court competent for procedures for the prevention or treatment of difficulties

Please note

For more information on EATs, please visit:

Companies in difficulty: designation and establishment of economic activity tribunals

Directorate of Legal and Administrative Information (Dila) - Prime Minister

Pour en savoir plus

Liberal activity

The application for designation (or request) must specify the elements following:

Presentation of the company (activity, employment, turnover and profit)
Economic, financial and social difficulties and financing needs
Remedial measures envisaged (e.g. payment deadlines and debt forgiveness)
Name of the ad hoc trustee (if the Head of company wishes to propose one)

The request for the appointment of an ad hoc representative shall be accompanied by subsequent documents :

Unique identification number (Siren)
Status of debts and debts with a schedule and a list of principal creditors
Active State and indebted of collateral and off-balance sheet commitments
Annual accounts
Financing schedule, statement of assets available and realizable (excluding operating values) and liabilities due in the last 3 financial years (if these documents have been drawn up)
Attestation on honor certifying that there is no cessation of payments

This application must be filed with the Court of Justice or the Economic Activities Tribunal (TAE).

Indeed, since the 1^er january 2025, the courts of 12 cities are replaced by Economic Activity Tribunals (EAT) for the processing of ad hoc mandate procedures, conciliation procedures and collective proceedings. The courts of the following cities are concerned: Avignon, Auxerre, Le Havre, Le Mans, Limoges, Lyon, Marseille, Nancy, Nanterre, Paris, Saint-Brieuc and Versailles.

The Ministry of Justice provides a simulator to know the competent court:

Know the court competent for procedures for the prevention or treatment of difficulties

Warning

The court has jurisdiction over the following regulated professions of law: lawyers, notaries, commissioners of justice, registrars of commercial courts, court administrators and judicial agents.

For more information on EATs, please visit:

Companies in difficulty: designation and establishment of economic activity tribunals

Directorate of Legal and Administrative Information (Dila) - Prime Minister

Pour en savoir plus

After considering the request for an ad hoc warrant, the President of the Tribunal shall receive the Head of the Tribunal in order to to collect its comments on the company situation.

At the end of the interview, if the President of the Tribunal considers the request to be well-founded, he shall issue an order appointing the ad hoc representative. This one is often a court administrator. If not, he refuses the request.

FYI

The leader may propose the name of an ad hoc representative to the president of the tribunal.

In the order of appointment, the Chairperson shall specify the following:

Purpose of the mission : most often, it consists of helping the head of company to negotiate an agreement with his principal creditors for the purpose of obtaining debt reschedulings.
Term of office : no maximum duration is provided. In practice, the ad hoc mandate lasts 3 months and can be renewed.
Conditions for the remuneration of the ad hoc representative : the Head of company agrees on the remuneration conditions of the ad hoc trustee before his appointment. This agreement shall be recorded in writing and annexed to the order appointing the ad hoc trustee.

The decision appointing the ad hoc trustee shall be communicated by registered letter with acknowledgement of receipt to the Head of company who has requested it. It shall also be communicated for information to the Auditor (CAC).

On the other hand, the Social and Economic Committee (ESC) (where it exists) or employees are not informed.

FYI

The appointment of the ad hoc representative shall not be not published. The procedure therefore remains confidential.

The purpose of the ad hoc trustee is to help the head of company to re-establish the situation in order to avoid cessation of payments.

For example, it goes accompany the company to unblock a conflict situation, renegotiate outstanding contracts, negotiate amicably agreements or debt reschedulings with the main creditors (bankers, tax and social agencies, suppliers, etc.). However, nothing can be imposed on the company's creditors or partners.

For the duration of the ad hoc mandate, the Head shall continue to lead and manage alone his company. The ad hoc trustee does not intervene in the management of the company.

FYI

During the term of the ad hoc mandate, legal actions or proceedings by creditors to obtain payment of their claims shall be maintained.

Tableau - Differences between the ad hoc mandate and conciliation
	Ad hoc mandate	Conciliation
Termination of payments	No	Not be in default of payments for more than 45 days
Stakeholders	Ad hoc trustee appointed by the court with the agreement or at the suggestion of the head of company	Conciliator appointed by the court with the agreement or at the suggestion of the Head of company. Most often, the conciliator is a court administrator.
Duration	No Maximum Duration	Maximum 5 months
Cost	Freely determined by the parties	Freely determined by the parties
Objective	Resolution of the difficulty with the assistance of a representative	Promote a friendly agreement with the main creditors
Confidentiality	Yes	Yes, unless the agreement is approved. In this case, the existence of the agreement shall be published in the Bodac.
Suspension of creditors' proceedings	No	No, except for creditors who have signed the conciliation agreement
Completion of the procedure	Successful completion of the task of the ad hoc trustee (agreement between partners or with creditors to stagger debts) The negotiation failed. Possibility of moving towards conciliation	Either a statement of agreement or a certified agreement with the creditors There is no agreement between the conciliator and the creditors. The President shall close the proceedings.

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