THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION

From a historical point of view, the French Commercial Code from 1807 had been known for its punitive regulation regarding debtors who had become insolvent. However, nowadays, the French legal system has transformed into one of the most „debtor-friendly” legislations across Europe. The French Commer...

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Main Author: Corina Georgiana COSTEA (CIOROIU)
Format: Article
Language:English
Published: Nicolae Titulescu University Publishing House 2022-06-01
Series:Challenges of the Knowledge Society
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Online Access:http://cks.univnt.ro/download/cks_2022_articles%252F2_CKS_2022_PRIVATE_LAW%252FCKS_2022_PRIVATE_LAW_006.pdf
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author Corina Georgiana COSTEA (CIOROIU)
author_facet Corina Georgiana COSTEA (CIOROIU)
author_sort Corina Georgiana COSTEA (CIOROIU)
collection DOAJ
description From a historical point of view, the French Commercial Code from 1807 had been known for its punitive regulation regarding debtors who had become insolvent. However, nowadays, the French legal system has transformed into one of the most „debtor-friendly” legislations across Europe. The French Commercial Code provides four mechanisms destined to prevent insolvency – the ad-hoc mandate, the conciliation proceeding, the safeguard proceeding, the accelerated safeguard proceeding – and a formal judicial proceeding destined to prevent bankruptcy, known as the judicial recovery proceeding. This paper will analyze the safeguard proceeding since it is the most successful tool in the French legal system regarding insolvency prevention, according to statistics. We aim at identifying the incentives leading debtors to resort to this mechanism and the best practices which may consist of a source of inspiration for other Member States’ legislations in matters of insolvency prevention. Moreover, France is one of the few countries having already implemented the Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications and on the measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1123 (Directive on restructuring and insolvency). Thus, the French safeguard proceeding may be considered as one of the most modern tools offered by a Member States’ legislation in matters of insolvency prevention.
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spelling doaj-art-2aca3f470e3243caa3d2e62d3c3bf7732024-12-02T07:30:51ZengNicolae Titulescu University Publishing HouseChallenges of the Knowledge Society2068-77962022-06-01151124135THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTIONCorina Georgiana COSTEA (CIOROIU)0, Faculty of Law, “Nicolae Titulescu” University of BucharestFrom a historical point of view, the French Commercial Code from 1807 had been known for its punitive regulation regarding debtors who had become insolvent. However, nowadays, the French legal system has transformed into one of the most „debtor-friendly” legislations across Europe. The French Commercial Code provides four mechanisms destined to prevent insolvency – the ad-hoc mandate, the conciliation proceeding, the safeguard proceeding, the accelerated safeguard proceeding – and a formal judicial proceeding destined to prevent bankruptcy, known as the judicial recovery proceeding. This paper will analyze the safeguard proceeding since it is the most successful tool in the French legal system regarding insolvency prevention, according to statistics. We aim at identifying the incentives leading debtors to resort to this mechanism and the best practices which may consist of a source of inspiration for other Member States’ legislations in matters of insolvency prevention. Moreover, France is one of the few countries having already implemented the Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019 on preventive restructuring frameworks, on discharge of debt and disqualifications and on the measures to increase the efficiency of procedures concerning restructuring, insolvency and discharge of debt, and amending Directive (EU) 2017/1123 (Directive on restructuring and insolvency). Thus, the French safeguard proceeding may be considered as one of the most modern tools offered by a Member States’ legislation in matters of insolvency prevention.http://cks.univnt.ro/download/cks_2022_articles%252F2_CKS_2022_PRIVATE_LAW%252FCKS_2022_PRIVATE_LAW_006.pdfsafeguard proceedingpreventive restructuringinsolvencyinsolvency preventionthe french commercial code
spellingShingle Corina Georgiana COSTEA (CIOROIU)
THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION
Challenges of the Knowledge Society
safeguard proceeding
preventive restructuring
insolvency
insolvency prevention
the french commercial code
title THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION
title_full THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION
title_fullStr THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION
title_full_unstemmed THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION
title_short THE SAFEGUARD PROCEEDING IN THE FRENCH LEGAL SYSTEM – A SUCCESSFUL TOOL IN INSOLVENCY PREVENTION
title_sort safeguard proceeding in the french legal system a successful tool in insolvency prevention
topic safeguard proceeding
preventive restructuring
insolvency
insolvency prevention
the french commercial code
url http://cks.univnt.ro/download/cks_2022_articles%252F2_CKS_2022_PRIVATE_LAW%252FCKS_2022_PRIVATE_LAW_006.pdf
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