Managing a company without governance

In the event of a serious governance conflict or, more generally, a deadlock in the operation of a company, association, co-ownership or estate, insolvency practitioners may be entrusted with the task of provisional administration.

Intended to be temporary, the purpose of this provisional administration is to ensure the day-to-day management of a structure and the implementation of appropriate solutions to restore its normal operation.

The court determines the purpose of the provisional insolvency practitioner’s (Administrateur provisoire) assignment, so as to limit the insolvency practitioner’s powers to the strict resolution of the crisis. The assignment may therefore be limited to certain specific tasks, such as convening a general meeting.

In certain more urgent and serious cases, the court may issue an order to completely replace the administrative and management bodies. The task of the provisional insolvency practitioner is to resolve the crisis and take full control of the organisation, while seeking a solution that will enable the company to return to normal.