Vol 9 (2012) - Issue 1

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Meeting of French Administrateurs Judiciaires and Mandataires Judiciaires: Belgium 17 November 2011

On 17 January 2011, the National Council of French Administrators and Liquidators, otherwise known as the Conseil National des Administrateurs Judiciaires et des Mandataires Judiciaires met for their annual Colloquium, this time in Brussels. There were over 130 delegates. It is by far the most important reunion of professionals in the French insolvency industry. The overriding theme of the Colloquium was the consideration of the development of the EC Insolvency Regulation 1346/2000.

The Colloquium, which lasted for a whole day, was structured on the basis of a series of round tables, with each round table comprising four or five separate speakers, analysing particular aspects of and relating to the European Regulation. It was held at the Sheraton Hotel in Brussels on the basis that this displayed the requisite degree of European-ness in order in turn to reflect the general theme of the gathering. The President of the National Council was kind enough to invite a number of foreign speakers, including the author of this Article to comment, in particular, on specific national views on various aspects of the Regulation.

It was clear that the theme was sufficiently important by those who organised the conference because of a perception, perhaps largely unjustified, that many people in the French insolvency industry were not particularly wholly familiar with and were even sometimes not particularly receptive to the thrust and intentions, not to mention the underlying philosophy of the Regulation.

The conference was opened by Madame Viviane Reding, the European Justice Commissioner in charge of matters relating to justice, human rights and related matters such as citizenship.

The first round table dealt with the important interrelationship between the EC Regulation and what were called procedures which involved no divestment. This was prompted by the relatively recent introduction into French law of what is called the Law of Safeguard, initially on 26 July 2005, thereafter reformed by further Regulations introduced on or about 18 December 2008. The relevant text can be found in Chapter VI of the French Code de Commerce. A word should perhaps be said about the distinction that exists in French insolvency procedure and practice between Administrateurs Judiciaires and Mandataires Judiciaires. They both emanate from a former and single profession known as the profession of Syndic-Administrateur Judiciare, but now encompass two separate functions. In general terms, judicial administrators assist, or on rare occasion, replace directors with a view to restructuring the relevant business. On the other hand and by way of contrast, Judicial ‘Mandataires’ represent the collective voice of the creditors as a whole and whenever there is deemed to be an inability on the part of the enterprise or the company to restructure itself, they, in effect, are responsible for the realisation of assets with a view to effecting distributions in accordance with laws which reflect the English system of paying dividends. They are also responsible for dealing with the fallout from any cessation of employment by employees. In round terms, there are in France 421 professionals who encompass both profession with the Administrateurs Judiciaires numbering some 113 persons, while there are 308 Mandataires Judiciaires, both professions in question employing a total of some 3,000 employees. More and more of these professionals have formed themselves into a corporate structure, there being some 28 companies or groups dealing with judicial administration, and 68 or so groups dealing with the business of carrying on activities as Mandataires Judiciaires.

A word should perhaps be said about the role of the National Council. The Council consists of two 'colleges' representing the two distinct branches of the overall profession. These colleges, in effect, act, in a very loose way, as trade unions for the professional organisations and, of course, the National Council is responsible for continuing education as well as disciplinary and related matters.