French Monetary and Financial Code
In forceI. - The Autorité de contrôle prudentiel et de résolution may appoint a provisional administrator to a person that it supervises, to whom all the powers of administration, management and representation of the legal person are transferred. The provisional administrator disposes of the movable and immovable property of the legal entity in the interests of sound administration.
The remuneration of the provisional administrator is set by the Autorité de contrôle prudentiel et de résolution. The remuneration and expenses incurred by the provisional administrator shall be borne by the person to whom he is appointed.
In the event of the appointment of a provisional administrator, commitments made in favour of a suspended manager by the institution itself or by any controlled undertaking or undertaking that controls it, within the meaning of II and III of Article L. 233-16 of the Commercial Code, and corresponding to remuneration, compensation or benefits due or likely to be due as a result of the termination or change of his duties, or subsequent thereto, may not give rise to any payment during the period of his assignment. At the end of the provisional administrator's term of office, the General Meeting shall decide, at its first meeting after the end of that term of office, on the resumption of such payments.
In the event of the dismissal of a senior executive pursuant to article L. 613-51-2 of this Code, the commitments made in favour of this executive by the institution itself or by any controlled or controlling company, within the meaning of II and III of article L. 233-16 of the French Commercial Code, and corresponding to remuneration, compensation or benefits due or likely to be due as a result of the termination or change of his duties, or subsequent thereto, may not give rise to any payment.
This appointment is made either at the request of the directors when they consider that they are no longer in a position to perform their duties normally, or at the initiative of the Autorité de contrôle prudentiel et de résolution when the management of the supervised entity can no longer be ensured under normal conditions or in the event of the suspension of one or more of its directors.
In the case of institutions affiliated to a central body, the latter may ask the Autorité de contrôle prudentiel et de résolution to appoint a provisional administrator in the institutions affiliated to it.
II. - When the situation gives reason to fear that an institution or undertaking covered by the Fonds de Garantie des Dépôts et de Résolution will eventually be unable to pay the remuneration of the provisional administrator and the expenses incurred by the latter, the Fonds de Garantie des Dépôts et de Résolution may, on a proposal from the Autorité de Contrôle Prudentiel et de Résolution, decide to guarantee payment in proportion to the various mechanisms implemented. Where the available funds of the person to whom a provisional administrator has been appointed by the Autorité de contrôle prudentiel et de résolution are not immediately sufficient, the Treasury, at the request of the Autorité de contrôle prudentiel et de résolution, shall advance the remuneration and all expenses incurred by the provisional administrator.
