In the last few months, a set of new measures has been implemented in order to improve the efficiency of the commercial justice in France. These
measures cover the substantive insolvency law as well as the institutional
framework.
New measures relating to the substantive insolvency law Facilitating out-of-court agreements
The information of staff representatives In order to facilitate out-of-court agreements, the Law n°2016-1547 of 18 November 2016 allows the directors engaged in negotiations with creditors not to inform the staff representatives about the opening of a mandat ad hoc (C. com., art. L.611-3 al. 3) or a conciliation procedure (C. com., art. L.611-6 al. 3). This measure prevents the director from being prosecuted on the basis of the Labour Law. According to the Labour Code, the director has to notify the financial difficulties the company is facing to the representatives of employees.
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