- Appointments: The judgment must appoint a judge to supervise the ensuing proceedings (juge-commissaire), and one to three administrators (syndics). The supervising judge ensures that the proceedings are carried forward with proper speed, and that the various contending interests are protected.
- Effects on the debtor: The debtor’s activity continues, with the assistance of the administrator, for an indefinite period unless the supervising judge decides otherwise. The administrator keeps the judge informed of the debtor’s situation at least every three months, and reports upon any income received.
- Determination and effects of date of insolvency: The judgment ordering the debtor to be put into administration must determine, at least provisionally, the date of insolvency, which may be no more than eighteen months earlier than the date of the judgment.
- Effects of the administration judgment on the creditors:
- Creation of the masse and suspension of claims: The judgment opening administration proceedings has the effect of constituting a single body of creditors known as the masse. The creditors concerned are those whose claims against the debtor arose prior to the date of the judgment, even if they were not yet payable.
- Declaration and verification of claims: All the creditors belonging to the body of creditors must declare their claims against the debtor within a period of 30 days following publication of the second legal notice of the administration proceedings, or within 60 days if they are located outside the country where the proceedings have been opened.
- Preferential rights: Employees of the debtor have a preferential right in relation to other creditors, for claims for unpaid amounts due under their employment contracts.
- Continuation of contracts: As regards contracts that were entered into before the debtor had been put into administration, the general rule is that they should continue in force. As per Article 107 of the Uniform Act, only such contracts as have been entered into intuit personae or as may be expressly specified by the national laws of the member states may be terminated when the debtor is put into administration.
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