"Prevention" meeting with the president of the court
Verified 02 May 2024 - Directorate for Legal and Administrative Information (Prime Minister)
The president of the commercial (or judicial) court has a mandate to prevent companies from suffering difficulties. In this context, it may summon the Head of company shall conduct an interview when he detects difficulties. We're talking about thealert the president of the tribunal. In addition, the Head of company may spontaneously request an interview with the president of the tribunal to take stock of his situation.
Summons
The court (commercial or judicial) has a preventive mission company difficulties. It assists, assists and guides heads of company to prevent the occurrence of cessation of payments.
The president of the tribunal has the option of summoning the head of company for a “consciousness-raising” interview if he has reason to believe that the company is in trouble. These are economic, financial or legal difficulties that can jeopardize the continuity of operations.
Signs of the company's difficulties include:
- Equity negatives
- Registrations of privileges from the Urssaf and the Public Treasury to the court registry: the privilege of the Urssaf and the privilege of the Public Treasury are preferential rights that allow the Urssaf and the Public Treasury to record their unpaid debts with the court registry when they exceed a certain amount: €20,000 for the Urssaf and €200,000 for the public purse.
- Defect of submission of annual accounts
- Loss of half of the capital and failure to regularize following that
- Injunctions to pay repeated
- Large number of security rights (such as privileges and pledges) recorded in the security rights register
FYI
Alert is a procedure that remains optional on behalf of the president of the tribunal.
The President of the Commercial Court (or the Judicial Court) summons the Head of company by registered post with AR and by ordinary post. This notice shall include a note explaining the reasons for his request for an interview.
The summons shall be sent to the less than 1 month in advance.
The head of company shows up for the interview or refuses to go there.
The head of company must present in person maintenance. He has the opportunity to be assisted by a lawyer or a public accountant.
During the interview, the president of the court inquires about the situation of the company and asks the head what measures are envisaged to rectify the situation of the company. It also informs the manager of the existence of different preventive procedures such as the ad hoc mandate and the procedure for reconciliation.
This interview is confidential. Minutes are drawn up, but only the date, place and identity of the persons present.
At the end of the interview, different situations may arise:
- The measures envisaged by the Head of company appear sufficient, or the continuity of the operation is not compromised. There is no follow-up to the interview and the file is closed.
- It appears necessary to obtain from the Head of company additional information or guidance on the corrective measures which he envisages. An appointment is made for a new interview.
- The Head of company is aware of the seriousness of the situation and indicates his intention to request the appointment of a ad hoc trustee or a conciliator.
Warning
The President of the Tribunal may not require the Director to appoint an ad hoc representative or to initiate conciliation proceedings.
If the director fails to appear, a report of failure to act shall be drawn up the same day by the registrar of the court.
However, the President of the Court may inform the Public Prosecutor's Office if he is aware of any evidence justifying the conditions for the opening of judicial redress or winding-up proceedings. The public prosecutor's office may then request the opening of a judicial reorganization or liquidation procedure.
The President of the Tribunal shall have 3 months from the date of dispatch the convening of a meeting to inquire into the economic and financial situation of the business.
He may address his request for information to the following persons or organizations:
- Auditors (CAC)
- Staff members and representatives
- General government (tax administration)
- Social security and welfare institutions
- Services for centralizing bank risks and payment incidents
Appointment request
A head of company in difficulty can spontaneously ask the president of the court for an interview. This interview is free, anonymous and confidential.
The court (commercial or judicial) has a preventive mission company difficulties. It may introduce a number of measures to prevent the occurrence of cessation of payments.
The Head of company may address the President spontaneously. It is addressed to the president of the commercial or judicial court depending on the activity carried out:
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Commercial and craft activity
The President of the Commercial Court shall have jurisdiction to deal with companies engaged in commercial and craft activities.
FYI
Each commercial court is equipped with a judge delegated to prevention and a detection and prevention cell with which it is possible to obtain an appointment in less than 24 hours.
Liberal activity
The President of the Judicial Tribunal shall have jurisdiction to deal with companies engaged in a liberal activity.
Who shall I contact
Please note
Lawyers, court administrators, judicial representatives or public or ministerial officials (notaries, commissioners of justice, etc.) may not be summoned by the president of the judicial tribunal in case of difficulty. However, the President of the Judicial Tribunal may inform the professional order of the difficulties encountered by these companies.
The meeting with the president of the tribunal provides an opportunity to take stock of the company's situation.
The president of the court then seeks a suitable solution. This may consist in the appointment of a ad hoc trustee or aconciliator.
Alert Procedure