Moralization of takeovers of companies in difficulty by the manager: is it time to abandon the absolute prohibition regime in favor of a prohibition for misconduct ?

Published in the Revue des Procédures Collectives, LexisNexis, April 2021

In this article, we examine the basis and relevance of the absolute prohibition, unless authorised by the public prosecutor, on the director of a company in judicial liquidation from bidding to take over its assets (known as a takeover at the bar). Our analysis is informed in particular by the reasons that justified the temporary lifting of this prohibition during Covid-19 (Order of 20 May 2020).

We consider a prohibition regime based on the director’s misconduct rather than on their mere status as a director.