French Commercial code
In forceI.-Any breach of the laws, regulations or professional obligations applicable to the persons mentioned in I and II of article L. 321-4 and to persons authorised to manage sales pursuant to the first paragraph of article L. 321-9. The limitation period is three years from the date of the breach. However, if the person concerned is the perpetrator of acts that have given rise to a criminal conviction, the action is time-barred after two years from the date on which the conviction became final.
The Enforcement Committee shall issue a reasoned decision upon referral to it by the Government Commissioner. No sanction may be pronounced without the complaints having been communicated to the person mentioned in I or II of article L. 321-4, to its legal representative or to the person authorised to manage the sales, without the latter having been given the opportunity to examine the file or without having been heard or duly summoned.
No member of the Enforcement Committee may take part in a deliberation or in the investigation of a case relating to :
1° A case in which he/she has a direct or indirect interest, in which he/she has already taken sides or if he/she represents or has represented the interested party;
2° A body in which he/she has, during the three years preceding the deliberation, held a direct or indirect interest, exercised functions or held a mandate.
II.-The penalties applicable to the persons mentioned in the first paragraph of I of this article are, taking into account the seriousness of the offences alleged:
1° A warning;
2° A reprimand;
3° A temporary ban from carrying out all or part of the activity of voluntary sale of furniture by public auction, from carrying out administrative or management duties within a legal entity mentioned in II of article L. 321-4 or to manage sales, for a period that may not exceed three years;
4° Permanent ban on carrying out the activity of voluntary sale of furniture by public auction, on exercising administrative or management functions within a legal entity mentioned in the same II or on managing sales.
The Enforcement Committee may, instead of or in addition to the penalties provided for in 1° to 4° of this II, impose a financial penalty on a person referred to in I or II of Article L. 321-4 a financial penalty, the amount of which is proportionate to the seriousness of the breach, the situation of the person in question, the extent of the damage caused and the benefits derived, but may not exceed 3% of the gross fees received during the previous year in respect of sales of furniture by public auction organised or carried out on national territory. This ceiling is raised to 5% in the event of a further breach of the same obligation. In the absence of previous activity enabling this ceiling to be determined, the amount of the penalty may not exceed €50,000. This amount is increased to €90,000 in the event of a further breach of the same obligation.
Where the breach constitutes a criminal offence, the amount of the fine may not exceed the amount of the criminal fine.
Where the Enforcement Committee has imposed a financial penalty that has become final before the criminal court has given a final ruling on the same or related facts, the criminal court may order that the amount of the financial penalty be deducted from the fine that it imposes.
The penalties provided for in 1° to 4° of this II may also be imposed on the legal representative of a person referred to in II of Article L. 321-4 if the breach is personally attributable to that person.
Any breach of the obligations relating to the fight against money laundering and terrorist financing set out in Sections 3 to 6 of Chapter I of Title VI of Book V of the code monétaire et financier shall also give rise to the implementation of the measures and penalties set out in Article L. 561-36-3 of the same code.
The sanctions imposed by the Enforcement Committee and the reasons for them may be published in the newspapers or other media that it determines, after the sanctioned persons have been notified. The costs of publication shall be borne by the persons concerned, who shall be jointly and severally liable for payment.
III -In urgent cases, the Chairman of the Conseil des Maisons de Vente or, after proceedings have been initiated before the Enforcement Committee, the Chairman of the Enforcement Committee may issue a formal notice to a person referred to in I or II of Article L. 321-4 of this Code or to a person authorised to manage sales to put an end to a breach of the law that has been observed and for which that person is responsible.
As a precautionary measure, the Chairman of the Conseil des maisons de vente or, after proceedings have been initiated before the Enforcement Committee, the Chairman of the Enforcement Committee may also order the provisional suspension of all or part of the activity of voluntary sale of furniture by public auction of a person referred to in I or II above or of a person authorised to manage sales. This measure may be ordered for a period that may not exceed one month, unless extended, which may not exceed three months.
The suspension may not be ordered or extended without the interested party having been notified of the complaints, without having been given the opportunity to acquaint himself with the case file and without having been heard or duly summoned.
