Preventing Business Difficulties: Towards A Monegasque Conciliation Procedure

Draft bill n°1.094 on the modernisation of corporate law provides for the creation of a conciliation procedure for debtors engaged in commercial or craft activities who are experiencing legal, economic or financial difficulties.

This new procedure is inspired by an existing one in the neighbouring country and is designed to prevent companies experiencing financial difficulties from suspending payments by facilitating an amicable settlement.

What would this procedure involve?

The conciliation process would be confidential and voluntary. If a debtor is experiencing legal, economic or financial difficulties, whether actual or presumed, and has not been in a state of suspension of payments for more than a fortnight, they may apply to the President of the Tribunal de première instance for the appointment of a conciliator.