In carrying out his activity, an entrepreneur may find himself in a particular state of economic and financial crisis that prevents him from paying his debts, and is defined a state of insolvency.
His inability to fulfil the obligations he has taken on results in his creditors being entitled to receive satisfaction for the amounts due them through a guarantee of equal treatment.
Controlled administration procedures have as their object the entire wealth of the entrepreneur and relate to all creditors. The main aim of each of them is essentially to drastically reduce the autonomy of the entrepreneur by taking away his access to assets and nominating a body to control activities.
Controlled administration procedures are implemented in the following situations:
- state of insolvency
- serious management irregularities
- temporary difficulty in fulfilling obligations.