Ad hoc mandate

Verified 07 May 2024 - 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.

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  

The company who is already in cessation of payments may not use the ad hoc mandate.

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

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.

The company shall apply to the commercial court or the court of justice, depending on the activity pursued:

Répondez aux questions successives et les réponses s’afficheront automatiquement

Commercial or craft activity

In order to request the appointment of an ad hoc representative, the Head of company shall 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)

FYI  

A model for appointing an ad hoc representative to the President of the Commercial Court is available:

Request for the appointment of an ad hoc representative

The request for the appointment of an ad hoc representative shall 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

The head of company must address his request to the president of the judicial tribunal of the place of the seat of the company:

Who shall I contact

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

The head of company must address his request to the president of the judicial tribunal of the place of the seat of the company:

Who shall I contact

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.

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 : usually 3 months, renewable several times
  • 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 remuneration is then fixed in a remuneration agreement signed by the President of the Court.

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.

The ad hoc mandate ends at the end of the time limit in the appointment order.

Two situations arise:

  • Success of the ad hoc trustee's mission (e.g. signing of an agreement between the creditors and company)
  • Ad hoc proxy negotiation failed. In this case, the company may move towards a reconciliation or a collective proceedings.

FYI  

The Head of company may at any time terminate the appointment of the ad hoc trustee.

Who can help me?

The public service accompanying companies

Do you have a project, a difficulty, a question of daily life?
Simple and free - you will be called back within 5 days by THE advisor who can help you.

Get a phone call with an advisor