I85PREP
⌘ K
Examen d'Aptitude d'Administrateur Judiciaire study materials
Examen d'Aptitude d'Administrateur Judiciaire study resources

Examen d'Aptitude d'Administrateur Judiciaire practice questions

One question at a time. Build your Examen d'Aptitude d'Administrateur Judiciaire understanding.

First 50 of 190 questions. Each one lists the choices, the correct answer, and an explanation. The checker at the top of this page saves progress in this browser when it is available.

Continue in the practice tool above to load more questions, 50 at a time.

Question 1Role knowledge and relevant French foundations

Under Article L. 611-3 of the French Commercial Code, who may ask the court president to appoint a 'mandataire ad hoc'?

  1. Any creditor holding an overdue claim.
  2. The debtor, who may also propose the person to be appointed. Correct answer.
  3. The comité social et économique acting without the debtor.
  4. The public prosecutor acting without a debtor request.

Explanation

Article L. 611-3 provides that the president of the competent court may appoint a mandataire ad hoc at the debtor's request and that the debtor may propose the appointee. Unlike Article L. 611-4 on conciliation, Article L. 611-3 itself does not state a financial-condition or cessation-of-payments test.

Question 2Role knowledge and relevant French foundations

What is the statutory time threshold regarding 'cessation des paiements' for opening a conciliation proceeding under Article L. 611-4 of the French Commercial Code?

  1. The debtor must have been in cessation of payments for at least six months.
  2. The debtor may not be in cessation of payments, or if it is, the cessation of payments must have occurred for no more than 45 days. Correct answer.
  3. Cessation of payments is strictly prohibited under all circumstances in conciliation.
  4. The debtor must be liquidating all its physical assets within 30 days.

Explanation

Under Article L. 611-4 of the Code de commerce, conciliation is open to debtors facing legal, economic, or financial difficulties, existing or foreseeable, provided they have not been in a state of cessation of payments for more than 45 days (pas en cessation des paiements depuis plus de quarante-cinq jours).

Question 3Role knowledge and relevant French foundations

What is the legal definition of 'cessation des paiements' set forth in Article L. 631-1 of the French Commercial Code?

  1. A situation where corporate balance sheet liabilities exceed total accounting assets.
  2. The inability of the debtor to meet its due current liabilities out of its available liquid assets (impossibilité de faire face au passif exigible avec son actif disponible). Correct answer.
  3. The refusal of a single bank to extend an overdraft facility.
  4. Any year-end fiscal net loss reported in the certified corporate accounts.

Explanation

Article L. 631-1 of the Code de commerce defines cessation of payments strictly as the inability to face due liabilities with available liquid assets: 'l'impossibilité de faire face au passif exigible avec son actif disponible'. It is a pure cash flow (liquidity) test, distinct from balance-sheet insolvency.

Question 4Role knowledge and relevant French foundations

What protection does the 'privilège de conciliation' (also known as 'New Money' privilege under Article L. 611-11 of the Commercial Code) confer on persons who provide new financing during an approved conciliation agreement?

  1. Immunity from criminal prosecution for any corporate offense.
  2. Priority over pre-existing claims in a later proceeding, subject notably to the statutory priority of super-privileged wage claims and qualifying post-opening court costs. Correct answer.
  3. Automatic acquisition of 51% of the debtor company's voting shares without paying consideration.
  4. Full reimbursement of the loan by the French Treasury in case of subsequent bankruptcy.

Explanation

Under Article L. 611-11 of the French Commercial Code, qualifying new cash or new goods or services supplied to sustain the business under a court-approved conciliation agreement receive the privilège de conciliation. In a later proceeding, that priority remains subject to the super-privileged wage claims and qualifying post-opening court costs identified by the statutory ranking rules.

Question 5Role knowledge and relevant French foundations

What is the maximum total duration of a conciliation proceeding under Article L. 611-6 of the French Commercial Code?

  1. 1 month, non-renewable.
  2. 4 months, which may be extended by up to 1 additional month (maximum 5 months total). Correct answer.
  3. 18 months automatically.
  4. 3 years upon simple notification of the conciliator.

Explanation

Under Article L. 611-6 of the Code de commerce, the court opens a conciliation procedure for a period not exceeding four months, which can be extended by reasoned order of the court president for a maximum of one additional month upon request of the conciliator, reaching a strict statutory maximum of five months.

Question 6Role knowledge and relevant French foundations

What are the two alternative modalities for formalizing a successful conciliation agreement under Articles L. 611-8 and L. 611-9 of the French Commercial Code?

  1. Registration with the police prefecture or publication in a national daily newspaper.
  2. Constatation (certification by the court president, maintaining confidentiality) or Homologation (formal judgment by the court, published and granting the new money privilege). Correct answer.
  3. Verbal handshake before a notary or deposit in the company safe.
  4. Direct approval by European Commission directive or presidential decree.

Explanation

A conciliation agreement may be either constaté (certified by order of the court president upon joint request of the parties, preserving absolute confidentiality) or homologué (sanctioned by a formal judgment of the court in public hearing, which makes the agreement public but grants the Article L. 611-11 New Money privilege).

Question 7Role knowledge and relevant French foundations

What is the statutory prerequisite for a debtor to petition for the opening of a safeguard proceeding ('procédure de sauvegarde') under Article L. 620-1 of the French Commercial Code?

  1. The debtor must be in cessation of payments for more than 45 days.
  2. The debtor must demonstrate difficulties that it is unable to overcome, without being in a state of cessation of payments. Correct answer.
  3. The debtor must have lost more than 90% of its total equity.
  4. The debtor must have already reached an agreement with all its suppliers.

Explanation

Article L. 620-1 of the Code de commerce specifies that safeguard is open to debtors who prove difficulties they are unable to overcome, without being in cessation of payments: 'qui justifie de difficultés qu'il n'est pas en mesure de surmonter' and 'qui n'est pas en cessation des paiements'.

Question 8Role knowledge and relevant French foundations

Who has exclusive standing to petition for the opening of a safeguard proceeding under French law?

  1. The public prosecutor (procureur de la République).
  2. Any unpaid creditor holding an overdue commercial claim.
  3. Only the legal representative of the debtor company. Correct answer.
  4. The staff representatives or CSE.

Explanation

Under Article L. 620-1 of the Code de commerce, a safeguard proceeding can ONLY be initiated upon the exclusive petition of the debtor (le débiteur seul a qualité pour demander l'ouverture de la sauvegarde). Neither creditors, nor the court acting sua sponte, nor the prosecutor can open a safeguard.

Question 9Role knowledge and relevant French foundations

What is the two-fold statutory mission assigned to the administrateur judiciaire in a safeguard proceeding under Article L. 622-1 of the French Commercial Code?

  1. Total management representation or liquidation of all operating branches.
  2. Supervising the debtor in their management acts (surveillance) or assisting the debtor in management acts (assistance). Correct answer.
  3. Serving judicial eviction notices and arresting delinquent managers.
  4. Assuming full personal ownership of all debtor shares.

Explanation

In a safeguard proceeding, the debtor remains in possession and continues managing the business. Under Article L. 622-1 of the Code de commerce, the court tasks the administrateur judiciaire either with supervising the debtor in management acts (surveillance) or with assisting the debtor for certain or all acts of management (assistance). The mission of full representation is strictly prohibited in safeguard.

Question 10Role knowledge and relevant French foundations

What is the fundamental rule regarding pre-existing debts ('dettes antérieures') set forth in Article L. 622-7 of the French Commercial Code upon the opening judgment?

  1. The debtor must immediately settle all pre-existing debts within 48 hours.
  2. The opening judgment prohibits the payment of any debt arising prior to the judgment, as well as debts arising subsequently that are not incurred for the needs of the proceeding (interdiction de payer les créances antérieures). Correct answer.
  3. All pre-existing debts are automatically erased by operation of law.
  4. Creditors can freely seize debtor assets without court authorization.

Explanation

Under Article L. 622-7 of the Code de commerce, the opening judgment automatically entails the prohibition of paying any claim arising prior to the judgment (principe d'interdiction des paiements des créances antérieures), subject to narrow exceptions authorized by the juge-commissaire (e.g., recovering pledged inventory or common carrier retention).

Question 11Role knowledge and relevant French foundations

What are the legal conditions under Article L. 622-13 of the French Commercial Code governing ongoing executory contracts ('contrats en cours')?

  1. All contracts are terminated automatically on the day of the opening judgment.
  2. The administrateur judiciaire alone has the sole prerogative to demand performance of ongoing contracts by providing the promised counter-performance, notwithstanding any contractual forfeiture or termination clause based on insolvency. Correct answer.
  3. The co-contractor may terminate the contract immediately upon learning of the opening judgment.
  4. The debtor must sign a new contract before a public notary for each ongoing supply.

Explanation

Under Article L. 622-13 of the Code de commerce, the opening of safeguard or reorganization does not terminate ongoing contracts. Any contractual clause providing for termination due to the opening of a collective proceeding is null and void (réputée non écrite). The administrator alone holds the discretionary option to require continuation of ongoing contracts.

Question 12Role knowledge and relevant French foundations

What happens if a co-contractor sends a formal notice ('mise en demeure') to the judicial administrator to decide on the continuation of an ongoing contract under Article L. 622-13 III?

  1. The administrator has 1 year to formulate an answer.
  2. If the administrator fails to respond within one month (which may be extended by up to one additional month by the juge-commissaire), the contract is terminated as of right (résiliation de plein droit). Correct answer.
  3. The co-contractor is fined 10,000 euros for procedural harassment.
  4. The administrator becomes personally liable for all company debts.

Explanation

Under Article L. 622-13 III of the Code de commerce, the co-contractor can serve a formal notice on the administrator. If no response is provided within one month (or extended by up to one month by the juge-commissaire), the contract is terminated by operation of law (résilié de plein droit).

Question 13Role knowledge and relevant French foundations

What status is granted under Article L. 622-17 of the French Commercial Code to claims arising regularly after the opening judgment for the needs of the proceeding ('créances postérieures privilégiées')?

  1. They are frozen and paid on the same rank as unsecured pre-existing claims.
  2. They must be paid at their contractual maturity date, and if not, they enjoy priority of payment over all pre-existing claims except super-privileged wage claims and legal costs. Correct answer.
  3. They are converted into perpetual corporate debentures.
  4. They are cancelled if the company enters liquidation.

Explanation

Under Article L. 622-17 I and II of the Code de commerce, claims regularly arising after the opening judgment for the needs of the proceeding or observation period, or in consideration of a performance provided to the debtor, are paid at their maturity dates. If unpaid, they are paid in priority over all pre-existing claims (except super-preferred wage claims and legal fees).

Question 14Role knowledge and relevant French foundations

What is the standard statutory deadline for creditors to declare their pre-existing claims ('déclaration de créances') under Article R. 622-24 of the French Commercial Code?

  1. 15 days from the opening judgment.
  2. Two months from the publication of the opening judgment in the BODACC (extended to four months for creditors residing outside mainland France). Correct answer.
  3. Two years from the filing of the balance sheet.
  4. There is no deadline; claims may be declared at any time before liquidation closure.

Explanation

Under Article R. 622-24 of the Code de commerce, creditors whose claims arose prior to the opening judgment must file their claim declarations with the mandataire judiciaire within two months of the publication of the opening judgment in the BODACC (extended by two months for creditors domiciled abroad or overseas).

Question 15Role knowledge and relevant French foundations

Under Article L. 622-26 of the French Commercial Code, what is the consequence of failing to declare a claim within the statutory deadline, and what remedy is available?

  1. The creditor is subject to criminal prosecution.
  2. The creditor suffers foreclosure (forclusion) and cannot participate in distributions, but may petition the juge-commissaire for relief from foreclosure (relevé de forclusion) within six months of BODACC publication if the delay is not attributable to them. Correct answer.
  3. The claim is automatically transferred to the public treasury.
  4. The debtor is immediately discharged of all civil obligations towards all creditors.

Explanation

Under Article L. 622-26 of the Code de commerce, undeclared claims are barred by foreclosure (forclusion). The creditor cannot receive distributions under the plan. However, the creditor can file an action for relevé de forclusion before the juge-commissaire within six months of BODACC publication if they prove the failure was not due to their fault.

Question 16Role knowledge and relevant French foundations

Within what deadline must an owner of goods held by the debtor exercise their claim of ownership ('revendication') under Article L. 624-9 of the French Commercial Code?

  1. Within 48 hours of the opening judgment.
  2. Within three months following the publication of the opening judgment in the BODACC. Correct answer.
  3. Within five years of the delivery of the goods.
  4. At any time before the end of the corporate financial year.

Explanation

Under Article L. 624-9 of the Code de commerce, the action in revendication (notably by sellers under a retention of title clause, clause de réserve de propriété) can only be exercised within a period of three months following the publication of the opening judgment in the BODACC.

Question 17Role knowledge and relevant French foundations

What is the primary role of the 'juge-commissaire' appointed in the opening judgment under Article L. 621-9 of the French Commercial Code?

  1. To personally run the daily commercial operations and manage sales staff.
  2. To ensure the rapid progression of the proceeding and protect the conflicting interests involved, deciding by orders (ordonnances) on contested claims, asset sales, and procedural authorizations. Correct answer.
  3. To represent the trade unions in collective bargaining negotiations.
  4. To preside over criminal felony trials against company directors.

Explanation

Article L. 621-9 of the Code de commerce provides that the juge-commissaire is tasked with supervising and expediting the proceeding and protecting the interests at stake. The juge-commissaire adjudicates on claim admissions, authorizes management acts exceeding standard powers (Article L. 622-7), and rules on asset sales.

Question 18Role knowledge and relevant French foundations

What distinguishes the role of the 'mandataire judiciaire' from that of the 'administrateur judiciaire' in French collective proceedings?

  1. The mandataire judiciaire assists the company in management, while the administrateur judiciaire liquidates it.
  2. The mandataire judiciaire represents the collective interest of the creditors and handles claim verification, whereas the administrateur judiciaire assists or represents the debtor and prepares the restructuring plan. Correct answer.
  3. The mandataire judiciaire is appointed by the police, while the administrateur is chosen by the mayor.
  4. There is no distinction; they are two names for the identical office.

Explanation

French insolvency law maintains a strict institutional separation: the mandataire judiciaire (Articles L. 812-1 et seq.) acts solely in the name and interest of all creditors (représentant des créanciers, claim verification), while the administrateur judiciaire (Articles L. 811-1 et seq.) is court-appointed to assist or represent the debtor and draft the restructuring plan.

Question 19Role knowledge and relevant French foundations

Following Ordinance n° 2021-1193 transposing the EU Restructuring Directive, which companies are subject to the mandatory establishment of 'Classes de parties affectées' (classes of affected parties) in safeguard or reorganization proceedings?

  1. Sole proprietorships with fewer than 2 employees and 10,000 euros in annual turnover.
  2. Companies exceeding statutory thresholds (e.g., at least 250 employees and 20 million euros net turnover, or 40 million euros net turnover), or upon authorization of the juge-commissaire upon the debtor's request. Correct answer.
  3. Only public state agencies listed in the national budget law.
  4. Exclusively foreign corporations incorporated in Delaware.

Explanation

Under Article L. 626-29 and Article R. 626-52 of the Code de commerce (reformed by Ordinance 2021-1193), classes of affected parties are mandatory for debtors that exceed statutory thresholds (250 employees and €20m turnover, or €40m turnover alone), or voluntarily upon request of the debtor authorized by the juge-commissaire.

Question 20Role knowledge and relevant French foundations

What is the voting majority required for a class of affected parties to approve a draft restructuring plan under Article L. 626-30-2 of the French Commercial Code?

  1. A simple majority of 50% of the voting members present.
  2. A two-thirds majority (at least two-thirds of the votes cast by the members of the class). Correct answer.
  3. Unanimous approval (100%) of all registered class members.
  4. Three-quarters of all voting equity holders.

Explanation

Under Article L. 626-30-2 of the Code de commerce, decisions within each class of affected parties are adopted by a majority of two-thirds (au moins deux tiers) of the votes cast by the members expressing a vote in the class.

Question 21Role knowledge and relevant French foundations

What is the 'Best-Interest-of-Creditors Test' (test du meilleur intérêt des créanciers) codified in Article L. 626-31 of the French Commercial Code?

  1. A psychological questionnaire filled out by company executives.
  2. A condition for court confirmation requiring that no dissenting affected party would be worse off under the restructuring plan than they would be in the event of judicial liquidation (either piecemeal or going concern). Correct answer.
  3. A requirement that the company director donate their personal home to the creditors.
  4. A guarantee that all creditors receive an immediate 100% cash payout within 24 hours.

Explanation

The best-interest-of-creditors test requires the court to verify, upon challenge by a dissenting creditor, that the plan ensures no dissenting affected party receives less than what they would receive in the event of judicial liquidation (whether through a plan of sale or piecemeal liquidation).

Question 22Role knowledge and relevant French foundations

What is the 'Cross-Class Cram-Down' (application forcée interclasses) mechanism under Article L. 626-32 of the French Commercial Code?

  1. The power of commercial banks to force the court to dismiss the judges.
  2. The power of the court, upon request of the debtor or administrator, to validate and impose a restructuring plan on dissenting classes of affected parties if specific statutory conditions are fulfilled. Correct answer.
  3. An automated algorithm executing stock trades during market crashes.
  4. A criminal sanction forcing dishonest shareholders into community service.

Explanation

Cross-class cram-down (application forcée interclasses) allows the court, upon request of the debtor or the administrator with the debtor's consent, to confirm a plan despite the rejection by one or more classes of affected parties, provided it was approved by a qualified supporting class (in the money or secured) and complies with the absolute priority rule.

Question 23Role knowledge and relevant French foundations

What is the maximum statutory repayment duration for a standard safeguard or judicial reorganization plan under Article L. 626-12 of the French Commercial Code?

  1. 3 years.
  2. 10 years (extended to 15 years for agricultural enterprises). Correct answer.
  3. 25 years for all commercial corporations.
  4. 50 years.

Explanation

Under Article L. 626-12 of the Code de commerce, the maximum duration of a plan de sauvegarde or plan de redressement is fixed by the court and may not exceed 10 years. For agricultural operations (exploitations agricoles), this maximum duration is extended to 15 years.

Question 24Role knowledge and relevant French foundations

What is the minimum annual repayment percentage required under Article L. 626-18 of the Commercial Code for plan installments starting from the third year?

  1. 1% per year.
  2. At least 5% of the total liabilities admitted in the plan per year. Correct answer.
  3. Exactly 33% each year.
  4. No payments are required until the tenth year.

Explanation

Under Article L. 626-18 of the Code de commerce, from the third year onwards, the annual installment payable to creditors under a standard plan cannot be less than 5% of the total amount of admitted debt liabilities, preventing back-loaded sham plans.

Question 25Role knowledge and relevant French foundations

What is the defining condition that leads to the opening of a 'redressement judiciaire' rather than a 'sauvegarde' under Article L. 631-1 of the French Commercial Code?

  1. The company having foreign shareholders.
  2. The debtor is in a state of cessation of payments ('cessation des paiements') and its recovery appears possible. Correct answer.
  3. The company employs more than 1,000 workers.
  4. The debtor has been convicted of an environmental misdemeanor.

Explanation

Article L. 631-1 of the Code de commerce states that redressement judiciaire is opened for any debtor who is in a state of cessation of payments and whose recovery appears possible (dont le redressement paraît possible). If the debtor is not in cessation of payments, only safeguard is applicable.

Question 26Role knowledge and relevant French foundations

Within what statutory time limit must a company manager file for insolvency ('dépôt de bilan') upon reaching cessation of payments under Article L. 631-4 of the French Commercial Code?

  1. Within 48 hours.
  2. At the latest within 45 days following the cessation of payments, unless the debtor has requested the opening of a conciliation procedure. Correct answer.
  3. Within 6 months.
  4. At the end of the calendar fiscal year.

Explanation

Under Article L. 631-4 of the Code de commerce, the opening of redressement or liquidation must be requested by the debtor at the latest within 45 days following the cessation of payments, unless the debtor has requested the opening of conciliation within that same period.

Question 27Role knowledge and relevant French foundations

What types of missions can the court confer on the administrateur judiciaire in a redressement judiciaire under Article L. 631-12 of the French Commercial Code?

  1. Only a mission of private mediation without court reporting.
  2. Either a mission of assistance (assisting the debtor in all or part of management acts) or a mission of representation (performing management acts alone in lieu of the debtor). Correct answer.
  3. Mandatory imprisonment of all executive officers.
  4. Direct seizure and sale of all company machinery at public auction within 10 days.

Explanation

Under Article L. 631-12 of the Code de commerce, in redressement judiciaire, the court entrusts the administrator either with a mission of assistance (mission d'assistance) or, if necessary, a mission of representation (mission de représentation), where the administrator replaces the manager in performing operational acts.

Question 28Role knowledge and relevant French foundations

What is the procedure for economic dismissals during the observation period in a redressement judiciaire under Article L. 631-19 of the French Commercial Code?

  1. The employer can dismiss any employee on the spot without any judicial authorization.
  2. Economic dismissals that are urgent, unavoidable, and indispensable may be authorized by order of the juge-commissaire, after consultation with the CSE and notification of the administrative labor authority. Correct answer.
  3. No dismissals can ever occur during collective proceedings under any circumstances.
  4. Dismissals can only be ordered by a referendum among the suppliers.

Explanation

Under Article L. 631-19 II of the Code de commerce, when economic dismissals are deemed urgent, unavoidable, and indispensable during the observation period, the administrator can be authorized by the juge-commissaire to proceed with them, following CSE consultation and informing the DREETS.

Question 29Role knowledge and relevant French foundations

What role does the 'Association pour la gestion du régime de Garantie des créances des Salariés' (AGS) play under Article L. 3253-6 of the Labor Code in collective proceedings?

  1. It acts as a private insurance fund paying executive bonuses.
  2. It advances funds to pay employee wage debts (unpaid salaries, notice pay, severance indemnities) owed by the insolvent employer, up to statutory regulatory ceilings. Correct answer.
  3. It supplies free temporary replacement workers to the company.
  4. It manages the marketing and sales promotion of the company's products.

Explanation

The AGS (funded by employer contributions) advances the payment of wage claims, notice periods, and statutory severance owed to employees when the insolvent debtor lacks available cash, stepping into the shoes of the employees as a subrogated privileged creditor.

Question 30Role knowledge and relevant French foundations

What is the super-privilege of wages ('superprivilège des salaires') under Articles L. 3253-2 et seq. of the French Labor Code?

  1. A ranking privilege granting employees priority payment for their last 60 days of work over all other creditors, including the French State, court costs, and secured mortgagees. Correct answer.
  2. A bonus system doubling employee salaries whenever the employer files for bankruptcy.
  3. An entitlement granting workers ownership of the company's headquarters building.
  4. A special exemption from all income and payroll taxes for 10 years.

Explanation

The superprivilège des salaires guarantees payment of wages for the last 60 days of work prior to the opening judgment (up to statutory ceilings). It takes precedence over all other claims without exception, including legal costs, tax claims, and mortgages.

Question 31Role knowledge and relevant French foundations

What is the primary objective of a plan of sale ('plan de cession') under Article L. 642-1 of the French Commercial Code?

  1. To auction off company office chairs to pay the judge's travel expenses.
  2. To ensure the maintenance of activities that can be operated independently, the preservation of all or part of the employment attached to them, and the clearing of liabilities. Correct answer.
  3. To secretly transfer assets to the debtor's close family members at nominal cost.
  4. To shut down domestic operations and relocate all machinery outside the European Union.

Explanation

Article L. 642-1 of the Code de commerce provides that the plan de cession has the threefold economic objective of ensuring the durable maintenance of viable business activities, preserving all or part of the associated jobs, and extinguishing liabilities (apurement du passif).

Question 32Role knowledge and relevant French foundations

Under Article L. 642-3 of the French Commercial Code, who is strictly barred from submitting a takeover bid for a company in a plan of sale?

  1. Any foreign business enterprise operating in the European Union.
  2. The corporate debtor, its de jure or de facto managers, their ascendants, descendants, and collaterals up to the second degree, as well as any legal entity controlled by them. Correct answer.
  3. Institutional investment banks registered with the AMF.
  4. Any competitor operating in the same industrial sector.

Explanation

Article L. 642-3 of the Code de commerce establishes a strict prohibition to prevent self-dealing: neither the debtor, nor de jure or de facto managers, nor their relatives (ascendants, descendants, collaterals to the second degree), nor entities they control, may directly or through an intermediary acquire the business.

Question 33Role knowledge and relevant French foundations

What is the legal effect of a judicial sale order on pre-existing employment contracts under Article L. 1224-1 of the Labor Code and Article L. 642-5 of the Commercial Code?

  1. All employees are automatically fired on the date of the judgment.
  2. Employment contracts of employees included in the takeover offer validated by the court are transferred automatically by operation of law to the purchaser. Correct answer.
  3. Employees become state civil servants.
  4. The purchaser may renegotiate down all salaries to zero for the first year.

Explanation

Under Article L. 642-5 of the Code de commerce and Article L. 1224-1 of the Labor Code, the takeover judgment binds the purchaser to the employment positions specified in the accepted offer. The employment contracts for those positions continue automatically with the transferee.

Question 34Role knowledge and relevant French foundations

Under what condition does the court order the judicial liquidation ('liquidation judiciaire') of a debtor under Article L. 640-1 of the French Commercial Code?

  1. Whenever the debtor records an accounting loss in two consecutive quarters.
  2. When the debtor is in cessation of payments and its recovery is manifestly impossible. Correct answer.
  3. Upon the sole verbal request of an angry supplier.
  4. Whenever the debtor's CEO decides to retire.

Explanation

Under Article L. 640-1 of the Code de commerce, judicial liquidation is opened for any debtor in cessation of payments whose business recovery is manifestly impossible (dont le redressement est manifestement impossible).

Question 35Role knowledge and relevant French foundations

What is the legal consequence of the 'dessaisissement' of the debtor upon the opening of judicial liquidation under Article L. 641-9 of the French Commercial Code?

  1. The debtor is dispossessed of the administration and disposition of their property, and their rights and actions concerning their assets are exercised by the liquidator. Correct answer.
  2. The debtor is exiled to an overseas territory.
  3. The debtor's civil identity is revoked.
  4. The debtor is forced to transfer their private passport to the creditors.

Explanation

Article L. 641-9 of the Code de commerce sets forth the principle of dessaisissement: the opening judgment dispossesses the debtor of the administration and disposition of their assets. All rights and patrimonial actions are exercised for the duration of the liquidation by the liquidateur judiciaire.

Question 36Role knowledge and relevant French foundations

What is the 'procédure de rétablissement professionnel' under Articles L. 645-1 et seq. of the French Commercial Code?

  1. A rehabilitation hospital stay for injured industrial workers.
  2. A debt-discharge procedure without liquidation for natural-person entrepreneurs in cessation of payments with very low assets and no employees. Correct answer.
  3. A disciplinary hearing to disbar dishonest corporate attorneys.
  4. An accelerated procedure to float small startups on the NASDAQ stock exchange.

Explanation

Rétablissement professionnel provides a fresh start for natural persons (individual entrepreneurs) in cessation of payments who have had no employees in the prior six months and hold declarable assets below 15,000 euros. It erases eligible debts without liquidating their modest tools.

Question 37Role knowledge and relevant French foundations

What is the legal effect of a judgment closing a judicial liquidation for insufficiency of assets ('clôture pour insuffisance d'actif') under Article L. 643-11 of the French Commercial Code?

  1. Creditors can immediately resume individual lawsuits and seizures against the debtor for the unpaid balance.
  2. Creditors do not recover their individual rights of action against the debtor (principe de non-reprise des poursuites individuelles), subject to narrow exceptions (fraud, personal bankruptcy, guarantor actions). Correct answer.
  3. The liquidator must pay the unpaid balance out of their personal funds.
  4. All corporate debts are automatically charged to the local municipal council.

Explanation

Article L. 643-11 I of the Code de commerce establishes the cornerstone rule of non-reprise des poursuites individuelles: closing the liquidation for lack of assets does not restore individual pursuit rights to creditors against the debtor, granting individuals a discharge from remaining debts unless specific exceptions apply (criminal conviction, personal sanctions, fraud).

Question 38Role knowledge and relevant French foundations

What is the 'période suspecte' (suspect period) in French insolvency law under Article L. 632-1 of the French Commercial Code?

  1. The period during which the police tap the debtor's telephones.
  2. The period between the date of cessation of payments fixed by the court (up to 18 months prior to the opening judgment) and the opening judgment, during which certain transactions may be declared null and void as of right or at the court's discretion. Correct answer.
  3. The three weeks prior to the annual general meeting of shareholders.
  4. A quarantine period imposed on imported agricultural products.

Explanation

The période suspecte spans from the date of cessation of payments determined by the court (which cannot precede the opening judgment by more than 18 months) until the opening judgment. Under Articles L. 632-1 and L. 632-2, certain acts performed during this period (e.g., gratuitous transfers, abnormal debt payments, securities granted for pre-existing debts) are automatically or optionally nullified.

Question 39Role knowledge and relevant French foundations

Which of the following acts performed during the suspect period is null as of right ('nullité de droit') under Article L. 632-1 of the French Commercial Code?

  1. Payment of a due commercial debt by cash, bank transfer, or standard commercial bill.
  2. Any mortgage, pledge, or security interest granted over the debtor's assets to secure a pre-existing debt contracted prior to the security agreement. Correct answer.
  3. Hiring an apprentice at the statutory minimum wage.
  4. Purchasing raw materials at regular market prices for immediate manufacturing.

Explanation

Under Article L. 632-1 6° of the Code de commerce, any mortgage, pledge, or security interest granted over debtor property for debts contracted anteriorly (pour dettes antérieurement contractées) is null as of right if established during the suspect period.

Question 40Role knowledge and relevant French foundations

What is the action in liability for insufficient assets ('action en comblement de passif' / responsabilité pour insuffisance d'actifs) under Article L. 651-2 of the French Commercial Code?

  1. An action against the company's suppliers to force them to forgive all debts.
  2. An action allowing the court, in judicial liquidation, to order de jure or de facto managers whose management faults contributed to the asset shortfall to pay all or part of the corporate debt deficiency personally. Correct answer.
  3. A tax fine imposed on customers who purchased goods at a discount.
  4. An automatic seizure of the bank accounts of all minority shareholders.

Explanation

Under Article L. 651-2 of the Code de commerce, when judicial liquidation reveals an asset deficiency (insuffisance d'actif), the court can hold de jure or de facto managers who committed management faults (fautes de gestion) contributing to the shortfall liable to pay all or part of the company's debts out of their personal patrimony.

Question 41Role knowledge and relevant French foundations

What protection was introduced into Article L. 651-2 of the Commercial Code by the Sapin II Law of 9 December 2016 regarding corporate directors?

  1. Directors are exempt from all taxes for 20 years.
  2. In the event of simple negligence ('simple négligence') in the management of the enterprise, the manager's liability for insufficient assets cannot be engaged. Correct answer.
  3. Directors are given full diplomatic immunity.
  4. The State must pay 100% of all unpaid corporate salaries.

Explanation

The Law of 9 December 2016 (Sapin II) amended Article L. 651-2 of the Code de commerce to explicitly state: 'Toutefois, en cas de simple négligence du dirigeant de droit ou de fait dans la gestion de la société, sa responsabilité au titre de l'insuffisance d'actif ne peut être engagée.'

Question 42Role knowledge and relevant French foundations

What is 'faillite personnelle' under Articles L. 653-1 et seq. of the French Commercial Code?

  1. A financial subsidy given to entrepreneurs to buy a new house.
  2. A civil professional sanction imposed by the court on a dishonest manager, entailing the prohibition to direct, manage, administer, or control any commercial or artisanal enterprise or legal entity. Correct answer.
  3. A mandatory sentence of five years of hard labor in a prison camp.
  4. An automated loan cancellation granted to commercial partnerships.

Explanation

Personal bankruptcy (faillite personnelle) is a civil professional disqualification sanction ordered against managers guilty of severe statutory infractions (e.g., using company funds for personal gain, sham transactions, concealment of accounting books). It strips the person of the right to run any business for up to 15 years.

Question 43Role knowledge and relevant French foundations

What constitutes the criminal offense of 'banqueroute' under Article L. 654-2 of the French Commercial Code?

  1. A company recording three consecutive months of supply chain delays.
  2. An intentional fraudulent act committed by a manager in cessation of payments, such as purchasing goods for resale below market price to delay proceedings, misappropriating assets, or faking/destroying accounting records. Correct answer.
  3. Taking an annual paid vacation without informing the greffier.
  4. Opening a foreign bank account in compliance with tax reporting rules.

Explanation

Banqueroute is the criminal bankruptcy offense punished under Article L. 654-2 of the Code de commerce by up to 5 years imprisonment and a €75,000 fine (increased for managers of financial institutions). It requires fraudulent intent in connection with cessation of payments (e.g., ruinous means to procure funds, diversion of assets, fraudulent accounting).

Question 44Role knowledge and relevant French foundations

How is the working capital requirement ('Besoin en Fonds de Roulement' - BFR) calculated in the financial diagnostic of a distressed enterprise?

  1. Fixed Assets minus Long-Term Debt.
  2. (Inventories + Trade Receivables) minus Operating Current Liabilities (Trade Payables + Tax/Social Liabilities). Correct answer.
  3. Total Annual Sales divided by the number of board members.
  4. Cash in Bank plus Equity Capital.

Explanation

In financial analysis, the Working Capital Requirement (BFR) represents the operating cash tied up in the business cycle: BFR = Actif circulant d'exploitation (stocks + créances clients) - Passif circulant d'exploitation (dettes fournisseurs + dettes fiscales et sociales). A sudden surge in BFR is a frequent trigger of cessation of payments.

Question 45Role knowledge and relevant French foundations

What is the 'Capacité d'Autofinancement' (CAF) and why is it critical when an administrateur judiciaire evaluates a draft restructuring plan?

  1. The statutory limit on how many cars the company can purchase.
  2. The gross operating cash-flow potential generated by the enterprise, determining its capacity to invest and repay annual plan installments to creditors. Correct answer.
  3. The total amount of donations received from non-profit charities.
  4. The market value of the founder's intellectual property.

Explanation

The Capacité d'Autofinancement (CAF) measures the cash surplus generated by operational business activities before financing investments and debt service. The administrator must verify that the projected CAF will reliably exceed annual plan debt annuities (annuités du plan) and essential replacement investments throughout the plan's duration.

Question 46Role knowledge and relevant French foundations

What is the legal consequence under Article L. 225-248 of the French Commercial Code when a company's equity ('capitaux propres') falls below half of its share capital?

  1. The company is automatically dissolved by the tax inspector within 24 hours.
  2. The board of directors must convene an extraordinary general meeting within four months of accounts approval to decide whether there is cause for early dissolution, and if not, restore equity within statutory deadlines. Correct answer.
  3. The company shares are transferred to the national bank.
  4. All commercial contracts are declared null and void.

Explanation

Under Article L. 225-248 (and L. 223-42 for SARL), if losses cause equity to drop below half of the registered share capital, managers must convene an extraordinary shareholders' meeting within 4 months to decide whether to dissolve early. If not dissolved, the company must reconstitute its equity to at least half the share capital within the statutory deadline.

Question 47Role knowledge and relevant French foundations

How are the professional fees ('émoluments et honoraires') of an administrateur judiciaire determined under Articles R. 663-1 et seq. of the French Commercial Code?

  1. The administrator sends an unitemized discretionary bill with no legal oversight.
  2. Fees are strictly tariffed and regulated by decree, comprising fixed handling rights and regressive proportional fees calculated on turnover, employee headcount, and plan debt, taxed by the court president or juge-commissaire. Correct answer.
  3. The administrator receives 50% of the company's gross annual sales in cash.
  4. Fees are paid in shares of the debtor company directly to the administrator's children.

Explanation

Under Articles R. 663-1 et seq. of the Code de commerce, the remuneration of administrateurs judiciaires is strictly regulated by law (émoluments tarifés). It includes fixed amounts and digressive percentage brackets based on turnover, number of employees, and assets/liabilities treated, and must be reviewed and taxed by order of the court president.

Question 48Role knowledge and relevant French foundations

Which authority maintains the national list and exercises disciplinary jurisdiction over judicial administrators under the French Commercial Code?

  1. The local municipal police commissioner.
  2. The Commission nationale d'inscription et de discipline des administrateurs judiciaires et des mandataires judiciaires. Correct answer.
  3. The French Trade Union Confederation (CGT).
  4. The European Central Bank in Frankfurt.

Explanation

The Code de commerce establishes the Commission nationale d'inscription et de discipline des administrateurs judiciaires et des mandataires judiciaires for list and disciplinary decisions. It is distinct from the CNAJMJ, the profession's representative national council, even though the council has separate oversight, training, and inspection functions.

Question 49Role knowledge and relevant French foundations

What is the civil professional liability regime ('responsabilité civile professionnelle') of an administrateur judiciaire in the performance of their court mandate?

  1. Judicial administrators enjoy absolute legal immunity and can never be sued for negligence.
  2. They are liable for their faults and negligence under ordinary civil tort law (Article 1240 of the Civil Code), and must carry mandatory professional indemnity insurance covering potential damages. Correct answer.
  3. They are liable only if convicted of treason against the state.
  4. The French Ministry of Justice automatically pays for any damages caused by the administrator.

Explanation

Under Article L. 814-3 of the Code de commerce and Article 1240 of the Civil Code, administrateurs judiciaires are personally liable for damages resulting from faults, errors, or negligence committed in the discharge of their duties. They are legally mandated to maintain comprehensive professional civil liability insurance.

Question 50Role knowledge and relevant French foundations

What is the primary prerequisite for opening an accelerated safeguard proceeding ('sauvegarde accélérée') under Article L. 628-1 of the French Commercial Code?

  1. The debtor must be currently involved in an ongoing conciliation proceeding and have prepared a draft plan supported by enough creditors to make its adoption plausible within statutory deadlines. Correct answer.
  2. The debtor must be in cessation of payments for more than 90 days.
  3. The debtor must have already liquidated all inventory and laid off all staff.
  4. The debtor must obtain an executive decree signed by the Prime Minister.

Explanation

Under Article L. 628-1 of the Code de commerce, accelerated safeguard can only be opened if the debtor is engaged in an ongoing conciliation procedure and has drafted a restructuring plan that appears likely to garner sufficient support from affected parties within the statutory duration.