French General Code of Local Authorities
In forceI. - A decree or, as the case may be, an order puts an end to the exercise of the competences of the public establishment of inter-municipal cooperation whose dissolution is requested, required or ipso jure and, where applicable, to the tax system of this establishment and its rights to receive State allocations. This decree or, as the case may be, this order results in the consecutive implementation of article L. 5211-25-1. When the conditions for liquidation have been met, the dissolution of the public establishment of intercommunal cooperation may be pronounced, by the same decree or order as appropriate, under the conditions provided for in III of this article.
II. - In the event of obstacles to the liquidation of the public establishment, the competent administrative authority shall defer the dissolution, which shall be pronounced in a second decree or order as appropriate. The public body then retains its legal personality solely for the purposes of its dissolution. The president of the public establishment shall report to the competent administrative authority every three months on the progress of the liquidation operations.
The budgets and administrative accounts of the public establishment being wound up are subject to articles L. 1612-1 to L. 1612-20. If the administrative account has not been adopted by 30 June of the year following the year in which the end of the exercise of powers was declared, the representative of the State in the department closes the accounts in support of the management account, following an opinion issued within one month by the regional audit chamber.
When the available cash of the public establishment is insufficient to cover all the expenses associated with the dissolution, its deliberative assembly adopts, before 31 March of the year in which the public establishment is wound up, or before 15 April of the year in which the deliberative bodies are renewed, a budget for the winding-up financial year, which provides for the distribution of budget contributions between the members. These contributions constitute compulsory expenditure.
At the request of the president of the public establishment of intercommunal cooperation or if he finds, in the light of the progress reports provided for in the first paragraph of this II, that the conditions for liquidation have been met, the competent administrative authority pronounces the dissolution of the public establishment under the conditions provided for in III.
No later than 30 June of the year following the year in which it pronounces the end of the exercise of powers, the competent administrative authority appoints, under the conditions laid down by decree in the Conseil d'Etat, a liquidator responsible, subject to the rights of third parties, for clearing debts and receivables and disposing of assets. The liquidator's assignment, which initially lasts for one year, may be extended for the same period until the end of the liquidation. As soon as he is appointed, the liquidator has the status of authorising officer accredited to the accounting officer of the public inter-municipal cooperation body in place of the chairman of the latter. In the absence of adoption of the budget by the deliberative body of the public establishment before 31 March of the year in which the public establishment is wound up, or before 15 April of the year in which the deliberative bodies are renewed, the representative of the State in the department, after formal notice and by way of derogation from article L. 1612-2, settles the budget on the basis of the draft drawn up by the liquidator and makes it enforceable. Supplementary budgets relating to the same financial year are not subject to the obligation to submit them to the regional audit chamber provided for in article L. 1612-9. After the accounts have been closed by the representative of the State in the département under the conditions provided for in the second paragraph of this II, the liquidator determines the distribution of assets and liabilities in accordance with the provisions of article L. 5211-25-1 and draws up, in place of the deliberative body of the establishment, the administrative account for the last year of liquidation, which is closed by the representative of the State in the département.
III. - The competent administrative authority pronounces the dissolution of the public establishment of intercommunal cooperation by decree or order and establishes, subject to the rights of third parties, the distribution between the members of all the assets and liabilities in the light of the last administrative account of the dissolved public establishment of intercommunal cooperation voted by the deliberative body or decided by the representative of the State in the department under the conditions provided for in II.
The members of the dissolved public establishment of intercommunal cooperation correct their results for the takeover of the results of the dissolved establishment, by budgetary deliberation, in accordance with the dissolution order or decree.
