By Yasmine EDDAM
4 May 2025
The opening of a safeguard or receivership procedure marks the start of a delicate phase: the observation period. During this stage, the main objective is to determine whether the company has the necessary capacity to recover while maintaining its activity. The day-to-day management of the business continues, but within a strict legal framework in which powers are divided between the director and the bodies involved in the procedure, in particular the court-appointed administrator where one has been appointed. Understanding this division of roles and powers is fundamental to navigating this complex period and protecting the company's interests as best as possible. The position of the company director: rights and restrictions Contrary to popular belief, the opening of insolvency proceedings does not automatically mean that the director is sidelined. However, their position and prerogatives vary depending on the nature of the proceedings and the court's decisions. Continuation in office:...
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