French Commercial code
In forceI.-The provisions of Articles L. 621-1 and L. 621-2 as well as those of Article L. 622-6 relating to the obligations incumbent on the debtor are applicable to the judicial liquidation proceedings.
Where the situation of the debtor who has declared that he is in a state of cessation of payments does not appear to be manifestly unsuitable for reorganisation, the court shall invite the debtor, in the absence of a subsidiary application for the purpose of opening judicial reorganisation proceedings, to present his observations on the existence of the conditions of Article L. 631-1. It then rules, in the same decision, on the application for judicial liquidation and, where appropriate, on the opening of judicial reorganisation proceedings.
Before ruling, the court examines whether the debtor's situation meets the conditions laid down in Articles L. 645-1 and L. 645-2 and opens, where appropriate, with its agreement, a professional recovery procedure.
II.-.In the judgment opening the judicial liquidation, the court appoints the official receiver. It may, if necessary, appoint more than one. The president of the court, if he has dealt with the debtor pursuant to Title I of this book, may not be appointed as the official receiver.
In the same judgment, without prejudice to the possibility of appointing one or more experts with a view to a mission that it determines, the court shall appoint, as liquidator, a registered judicial representative or a person chosen on the basis of the first paragraph of II of Article L. 812-2 or, for the procedures mentioned in III of this same article, a bailiff or a judicial auctioneer. It may, at the request of the public prosecutor, the debtor or the pursuing creditor or of its own motion, appoint several.
The public prosecutor may propose a liquidator for appointment by the court. Rejection of this proposal must be specially reasoned. Where the proceedings are opened in respect of a debtor who is benefiting or has benefited from an ad hoc mandate or a conciliation procedure in the preceding eighteen months, the Public Prosecutor's Office may also object to the ad hoc mandate or conciliator being appointed as liquidator.
When proceedings are opened in respect of a debtor whose number of employees is at least equal to a threshold set by decree in the Conseil d'Etat, the court shall request the observations of the institutions mentioned in article L. 3253-14 of the Labour Code on the appointment of the liquidator.
An employee representative is appointed under the conditions provided for in the second paragraph of article L. 621-4 and in Article L. 621-6. It carries out the duties set out in article L. 625-2. In the absence of a social and economic committee, the employees' representative exercises the functions devolved to this institution by the provisions of this title.
The auditors are appointed and exercise their powers under the conditions set out in Title II.
Without prejudice to the application of article L. 641-2, the court shall appoint, for the purpose of carrying out, where applicable, the inventory provided for in Article L. 622-6 and the appraisal of the debtor's assets, a judicial auctioneer, a bailiff, a notary or a sworn goods broker, in consideration of the respective powers conferred on them by the provisions applicable to them.
The court-appointed agents and the persons designated in the previous paragraph shall make known without delay any factor that could justify their replacement.
III.-When the judicial liquidation is ordered during the observation period of a safeguard or legal redress procedure, the court appoints the judicial representative as liquidator. However, the court may, by reasoned decision, at the request of the administrator, a creditor, the debtor, the institutions mentioned in article L. 3253-14 of the Labour Code or the public prosecutor, appoint another person as liquidator under the conditions provided for in article L. 812-2.
Where the debtor practises a liberal profession subject to a legislative or regulatory statute or whose title is protected, the application may also be made to the court by the professional order or competent authority to which, where applicable, the debtor is subject.
IV.-.The date of cessation of payments is set under the conditions set out in article L. 631-8.
