The French Judicial Administrator can undertake the day-to-day management of a company in case of prolonged vacancy . He may then act as a legal representative. Management on behalf of third parties, a transitional measure, is considered a temporary administration. It may concern:
- a company (until the appointment of new chief executive officers)
- a joint-possession inheritance (until the final distribution is made by the notary)
- a joint property condominium in difficulty (while waiting for the appointment of a new managing agent).
The present section mainly deals with the temporary administration of a company.
ISSUES / PROBLEMS FACING COMPANY
Several situations can lead to the designation of a temporary administrator:
- death of the majority shareholder or chief executive officer
- expiry of the chief executive officers’ mandate – serious conflict of interest between shareholders paralysing the operations of the company (especially in the case of 50-50 shareholders). The administrator assumes the position of legal representative and manager until conflicts are solved or upon designation of new chief executive officers.
The temporary administrator is appointed by the President of the Court:
- either upon request of the associates
- or by legal writ in the event of conflict
The scope and length of his mandate are determined by the Court.
CONDUCT OF PROCEEDINGS
- complete full-time management
- specific replacements (convening of a General Meeting, approval of the financial statements )
– Experience of management, from legal representation to day-to-day business
– Operational experience and a perfect command of the duties and responsibilities of the director
-A legal protection:throughout the procedure, the administrator may be liable to civil and penal actions.
He ensures the respect of due process principle and keeps all parties informed on a timely basis. Depending on his mission, he defers to shareholders for decision exceeding the everyday management.
FHB MAIN REFERENCES
• Legal appointment of a liquidator,
• Conventional mandate,
• Legal appointment in case of acceptance up to net assets,
LEGAL REPRESENTATION OF AN UNDIVIDED CO-OWNER
• Failure/inertia of an undivided co-owner
• Absence/geographical distance of an undivided co-owner
LEGAL REPRESENTATION OF CO-OWNERSHIP
• Non-re-election/non-designation of a property manager
• Absence of a property manager
• Inertia/incapacity of property managers
• Insolvent property mangers
• Ad-hoc mandate for pre-insolvent property-managers
LEGAL REPRESENTATION OF AN ASSOCIATION
• Acute crisis incompatible with a day-to-day management,
LEGAL REPRESENTATION OF “SOCIETES CIVILES”
• Hindrance to effective management of a nature to seriously prejudice its future