Bankruptcy Law

The bankruptcy judge sets the remuneration for the functions performed by the debtor, if he or she is an individual, or by the managers of the legal entity . The manager of the debtor legal entity may only be granted a remuneration if this is accompanied by consideration, i.e. actual activity, which cannot be the case when the continuation of the business has not been authorized . This remuneratio …

Remuneration of debtor or manager

The bankruptcy judge sets the remuneration for the functions performed by the debtor, if he or she is an individual, or by the managers of the legal entity . The manager of the debtor legal entity may only be granted a remuneration if this is accompanied by consideration, i.e. actual activity, which cannot be the case when the continuation of the business has not been authorized . This remuneration, which cannot be granted to employees , is determined by the bankruptcy judge on the advice of the liquidator and the receiver, where one has been appointed . The latter may not require that the company be in bonis or that the assets be sufficient to grant remuneration to the manager, since the law does not make the granting of remuneration to the manager subject to such conditions . The bankruptcy judge has exclusive jurisdiction in this area: no remuneration may be granted by a resolution of the shareholders' assembly, without his prior authorization . Likewise, the deduction from the debtor company's account of amounts in excess of those authorized by the bankruptcy judge constitutes an undue payment which the director must repay .

In the absence of remuneration, Article L. 631-11 of the Commercial Code  allows debtors who are natural persons, or the managing director of a legal entity undergoing a court-supervised liquidation procedure , to obtain out of the assets, for themselves and their families, subsidies to meet personal needs. The amount awarded is determined by the bankruptcy judge, after consulting the liquidator and the receiver, if one has been appointed , taking into account any income received from assets not covered by the procedure . The allocation of subsidies requires the debtor to justify his financial situation and alleged needs . The bankruptcy judge may allocate a vehicle to the debtor as a subsidy if the latter can prove that he or she is destitute and needs it to drive his or her children to school and to look for work . Subsidies may also take the form of a payment towards the debtor's water, gas and electricity bills, and the continued provision of a vehicle, without consideration . On the other hand, the granting of subsidies is not justified if the debtor holds another paid job and is not in a situation of need, and if the operating and realizable value of the vehicles object of the demand is requested constitutes more than half of the company's financial assets .

C. com., art. L. 631-11, applicable to the court-supervised liquidation procedure by reference to art. L. 641-11 C. com.

CA Bourges, 15 May 2014, LawLex202200008258JBJ (LJ).

CA Pau, 20 January 2022, LawLex202200008259JBJ (LJ), holding that the court cannot award a lump sum to the debtor by way of subsidies, without having carried out any analysis of his personal situation, on the basis of considerations that have more to do with the allocation of executive remuneration.

CA Nancy, 28 February 2018, LawLex202200008267JBJ (LJ); 4 May 2022, LawLex202200008265JBJ (LJ), holding that the stay on the payment of subsidies, in accordance with the ordinance of the bankruptcy judge which makes it conditional on the collection of the rents from which they are deducted, is justified in the event of non-payment by the tenants and justification, by the debtor, of his financial situation and his efforts to find a job.

CA Aix-en-Provence, 17 May 2018, LawLex202200008263JBJ (LJ).

CA Nancy, 28 February 2018, LawLex202200008267JBJ (LJ).

CA Poitiers, 7 May 2019, LawLex202200008264JBJ (LJ).

CA Agen, 28 June 2016, LawLex202200008266JBJ (LJ).

CA Pau, 7 July 2014, LawLex202200008257JBJ (LJ).

CA Nancy, 10 October 2012, LawLex202200008261JBJ (RJ).

CA Rennes, 8 November 2016, LawLex202200008260JBJ (LJ).

Applicable to the court-supervised liquidation procedure by reference to Art. L. 641-11, al. 1er C. com.

CA Lyon, 8 September 2016, LawLex202200008262JBJ (LJ), holding that the right to subsidies, in the absence of remuneration, cannot be claimed by a person who is not the de jure manager of the debtor company.

Bankruptcy Law

785. Remuneration of debtor or manager

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785. Remuneration of debtor or manager

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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