The procedure of liquidation of assets can be closed for the extinction of liabilities or for insufficient assets. The court may then, at the request of any interested person or ex officio, at any time during the proceedings and after a report by the official receiver, close the proceedings. In case of insufficiency of assets, the business disappears and, perhaps, the hope of any payment to creditors as well. For a long time, it was accepted that the closure for lack of assets allows creditors to resume individual proceedings against the debtor, especially if the latter returns to better circumstances. This traditional solution has been abandoned. According to OHADA Uniform Act on the organisation of collective procedures for the settlement of liabilities, revised on 10 December 2015, closure for insufficiency of assets no longer automatically gives creditors the right to take individual action. Thus, when a liquidation leads to a shortage of assets, the satisfaction of creditors remains uncertain. The objective of this study is to show that despite this reform, the protection of creditors’ rights has not changed significantly in the event of insufficient assets. Indeed, any possible recourse to the recovery of their claims remains paralysed by certain measures that infringe their rights. The infringements can be described as severe or moderate depending on the case.
| Published in | International Journal of Law and Society (Volume 6, Issue 2) |
| DOI | 10.11648/j.ijls.20230602.13 |
| Page(s) | 124-129 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2023. Published by Science Publishing Group |
Creditors, Insufficiency of Assets, Liquidation, Collective Proceedings
| [1] | By definition, an enterprise is an organised structure "bringing together, under common management, both human and material resources with a view to carrying out economic, commercial, industrial or service activities" (see Dictionnaire du vocabulaire juridique, Paris, Litec, 1ère éd. 2002, under the direction of CABRILLAC (R.); Lexique des termes juridiques, under the direction of GUINCHARD (S.) and MONTAGNER (G.), 21ème éd., Paris, Dalloz, 1999, p. 227. |
| [2] | LAMBERT (G.), Introduction à l'examen de la notion juridique de l'entreprise, in Mélanges en l'honneur de KAYSER, T. 2, 2003, pp. 77 et S. |
| [3] | KALIEU ELONGO (Y. R.), Le droit des procédures collectives de l'OHADA, PUA, 2016, p. 156. |
| [4] | Art. 109 of Law N°2017/011 of 12 July 2017 on the general status of public enterprises. |
| [5] | MOUHOUAIN (S.) "La réforme du droit camerounais des entreprises publiques et le droit des sociétés commerciales de l'espace OHADA", Revue de Droit, Vol. 24, 2019, p. 7. |
| [6] | LE CORRE (L. M.), «Premiers regards sur la loi de sauvegarde des entreprises» loi n° 2005- 845 du 26 juillet 2005), Dalloz, 2005, supplément au n° 33, p. 2312, n°44. 518 Cité par F. THERA, L'application et la réforme de l'acte uniforme de l'OHADA organisant les procédures collectives d'apurement du passif, Thèse, Université Jean Moulin Lyon 3, Présentée et soutenue à Lyon le 6 décembre 2010, p. 180. |
| [7] | SAWADOGO (F. M.), procédures collectives d'apurement du passif, commentaire de l'acte uniforme portant organisation des procédures collectives d'apurement du passif, Juriscope, collection OHADA, Harmonisation du droit des affaires, Mise à jour 2011, note sous l'article 72, p. 953. |
| [8] | TSAGUE DONKENG (H.), "Le régime de l'insuffisance d'actifs en droit OHADA des procédures collectives", Revue de l'ERSUMA: Droit des affaires-Pratiques Professionnelle, n°4 Septembre 2014, Études p. 3. |
| [9] | C. Paris, 25 June 1996, JURISDATA n° 022505, C. Grenoble, 13 March 1997, Jurisdata n° 044154. |
| [10] | MAZEAUD (H.) and CHABAS (J.), Introduction à l'étude du droit, In Leçon de droit civil, 11ème éditions, Montchrestien, n° 280. p. 351. |
| [11] | CABRILLAC (R.) (dir), Dictionnaire du Vocabulaire Juridique, 1ère éd., Litec, Paris, 2002, P. 204; voir dans ce sens, CORNU (G.), Vocabulaire juridique, Association Henri Capitant, Paris-PUF, 2011. p. 174. |
| [12] | CORNU (G) (Dir), Vocabulaire juridique, Association Henry Capitant, 11ème éd. (Mise à jour), Quadrige-PUF, janvier 2016, p. 747. |
| [13] | This rule, which today makes a debtor's patrimony the general pledge of his creditors, was widely developed by AUBRY and RAU. See MAZEAUD (D.) and CHABAS (J.), Introduction à l'étude du droit, in Leçon de droit civil, 11ème éditions, Montchrestien, n°283, p. 417. |
| [14] | Art. 1313, para. 2 of the Civil Code. |
| [15] | Art 111 of the law n°2017/11 portant général statut des entreprises publiques. |
| [16] | Article 2284 of the Civil Code. |
| [17] | SAWADOGO (F. G.) commentary on the uniform act on the organisation of collective procedures for the settlement of liabilities, in ISSA - SAYEGH, POUGOUE and SAWADOGO, OHADA: Traité et actes uniformes commentés et annotés, Juriscope, 2ème editions, 2002, p. 811. |
APA Style
Hilarion Kontchop, Edith Nadège Fopa Tsala. (2023). Critical Reflection on the Rights of Creditors in Case of Insufficiency of Assets in OHADA Collective Procedures Law. International Journal of Law and Society, 6(2), 124-129. https://doi.org/10.11648/j.ijls.20230602.13
ACS Style
Hilarion Kontchop; Edith Nadège Fopa Tsala. Critical Reflection on the Rights of Creditors in Case of Insufficiency of Assets in OHADA Collective Procedures Law. Int. J. Law Soc. 2023, 6(2), 124-129. doi: 10.11648/j.ijls.20230602.13
AMA Style
Hilarion Kontchop, Edith Nadège Fopa Tsala. Critical Reflection on the Rights of Creditors in Case of Insufficiency of Assets in OHADA Collective Procedures Law. Int J Law Soc. 2023;6(2):124-129. doi: 10.11648/j.ijls.20230602.13
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Download@article{10.11648/j.ijls.20230602.13,
author = {Hilarion Kontchop and Edith Nadège Fopa Tsala},
title = {Critical Reflection on the Rights of Creditors in Case of Insufficiency of Assets in OHADA Collective Procedures Law},
journal = {International Journal of Law and Society},
volume = {6},
number = {2},
pages = {124-129},
doi = {10.11648/j.ijls.20230602.13},
url = {https://doi.org/10.11648/j.ijls.20230602.13},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijls.20230602.13},
abstract = {The procedure of liquidation of assets can be closed for the extinction of liabilities or for insufficient assets. The court may then, at the request of any interested person or ex officio, at any time during the proceedings and after a report by the official receiver, close the proceedings. In case of insufficiency of assets, the business disappears and, perhaps, the hope of any payment to creditors as well. For a long time, it was accepted that the closure for lack of assets allows creditors to resume individual proceedings against the debtor, especially if the latter returns to better circumstances. This traditional solution has been abandoned. According to OHADA Uniform Act on the organisation of collective procedures for the settlement of liabilities, revised on 10 December 2015, closure for insufficiency of assets no longer automatically gives creditors the right to take individual action. Thus, when a liquidation leads to a shortage of assets, the satisfaction of creditors remains uncertain. The objective of this study is to show that despite this reform, the protection of creditors’ rights has not changed significantly in the event of insufficient assets. Indeed, any possible recourse to the recovery of their claims remains paralysed by certain measures that infringe their rights. The infringements can be described as severe or moderate depending on the case.},
year = {2023}
}
TY - JOUR T1 - Critical Reflection on the Rights of Creditors in Case of Insufficiency of Assets in OHADA Collective Procedures Law AU - Hilarion Kontchop AU - Edith Nadège Fopa Tsala Y1 - 2023/04/24 PY - 2023 N1 - https://doi.org/10.11648/j.ijls.20230602.13 DO - 10.11648/j.ijls.20230602.13 T2 - International Journal of Law and Society JF - International Journal of Law and Society JO - International Journal of Law and Society SP - 124 EP - 129 PB - Science Publishing Group SN - 2640-1908 UR - https://doi.org/10.11648/j.ijls.20230602.13 AB - The procedure of liquidation of assets can be closed for the extinction of liabilities or for insufficient assets. The court may then, at the request of any interested person or ex officio, at any time during the proceedings and after a report by the official receiver, close the proceedings. In case of insufficiency of assets, the business disappears and, perhaps, the hope of any payment to creditors as well. For a long time, it was accepted that the closure for lack of assets allows creditors to resume individual proceedings against the debtor, especially if the latter returns to better circumstances. This traditional solution has been abandoned. According to OHADA Uniform Act on the organisation of collective procedures for the settlement of liabilities, revised on 10 December 2015, closure for insufficiency of assets no longer automatically gives creditors the right to take individual action. Thus, when a liquidation leads to a shortage of assets, the satisfaction of creditors remains uncertain. The objective of this study is to show that despite this reform, the protection of creditors’ rights has not changed significantly in the event of insufficient assets. Indeed, any possible recourse to the recovery of their claims remains paralysed by certain measures that infringe their rights. The infringements can be described as severe or moderate depending on the case. VL - 6 IS - 2 ER -
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