Judicial safeguard procedure You are company director?

Have you noticed that your company is experiencing difficulties?

This newsflash is for you.

In fact, in order to protect yourself in advance, you can diagnose your difficulties early on, hoping for a more favorable outcome to the crisis by taking action as soon as the first signs of difficulty appear.

This prevention procedure, called judicial safeguard procedureThis involves presenting a draft rescue plan and taking initiatives to safeguard your business, enabling you to maintain your autonomy as a company director.

To qualify, the company director must file his or her application with the secretariat of the court clerk's office responsible for the location of the company's registered office.

The application must state the nature of the difficulties likely to jeopardize the company's continued operation, and must be accompanied by a number of supporting documents and a draft safeguard plan including all the commitments necessary to safeguard the company, the means of maintaining business, the arrangements for discharging liabilities and the guarantees granted for the execution of the said plan.

If the court decides to validate the safeguard plan, it sets a time limit for its implementation, which may not exceed five (5) years.

On the other hand, if the head of the company fails to meet the commitments set out in the plan, the court may, on its own initiative or at the request of an aggrieved creditor, and of course after hearing the head of the company and the trustee, decide to terminate the sauvegarde plan and consequently decide on either receivership or compulsory liquidation.

We will be happy to provide you with any further information you may require, or to assist you in carrying out this procedure.

Best regards,

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist