Code de Commerce (Commercial Code)

Introduction

The Code de Commerce is the French Commercial Code that governs commercial activities, business organizations, and insolvency proceedings. It codifies the law applicable to commerçants (merchants), commercial contracts, and commercial courts.

Structure

The Code de Commerce is organized into books covering: commercial activities in general (Book I), commercial companies and economic interest groups (Book II), commercial property (Book III), prices and competition (Book IV), negotiable instruments (Book V), and a crucial Book VI on company rescue and insolvency (redressement judiciaire and liquidation judiciaire).

Key Provisions

The Code defines who is a commerçant, regulates commercial sales and contracts, governs negotiable instruments (checks, promissory notes), and establishes the jurisdiction of commercial courts (tribunaux de commerce).

Insolvency

Book VI provides procedures for preventing and resolving business difficulties. The procédure de sauvegarde allows solvent companies to obtain court protection to restructure debt. Redressement judiciaire applies to insolvent but viable companies. Liquidation applies when recovery is impossible.