Chapter I: Judgment of compulsory liquidation.

Articles in this section · 20

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Article L641-10

French Commercial codeIn force
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Updated 7 Nov 2023

If the sale of all or part of the business is conceivable or if the public interest or that of the creditors so requires, the continuation of the business may be authorised by the court for a maximum period set by decree in the Conseil d'Etat. It may be extended at the request of the public prosecutor for a period set by the same decree. In the case of a farm, this period is set by the court according to the current crop year and the specific customs of the productions concerned.

The liquidator administers the business.

Under the conditions set out in article L. 631-17, it may proceed with dismissals.

Where applicable, it prepares a disposal plan, takes the necessary steps to implement it, and receives and distributes the proceeds.

However, when the number of employees or the turnover is greater than or equal to thresholds set by decree in the Conseil d'Etat or, in case of necessity, the court appoints a court-appointed administrator to administer the business. In this case, the administrator exercises the prerogatives conferred on the liquidator by articles L. 641-11-1 et L. 641-12. It prepares the sale plan, takes the necessary steps to implement it and, under the conditions set out in article L. 631-17, may proceed with redundancies. The public prosecutor may propose the name of a receiver for appointment by the court, which may reject it only by a specially reasoned decision.

When the administrator does not have the sums necessary to continue the business, he may, with the authorisation of the juge-commissaire, have them remitted to him by the liquidator.

The liquidator or the administrator, where one has been appointed, shall exercise the functions conferred, as the case may be, on the administrator or the mandataire judiciaire by the articles L. 622-4 and L. 624-6.

The adoption of a total disposal plan or the expiry of the deadline set in application of the first paragraph puts an end to the continued operation of the business. The court may also decide to terminate it at any time if it is no longer justified.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

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Toque #C2396

15+ Years In Corporate Practice

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