1E9Ct5D

. FranceUnder French law, the company officers must file for insolvency within 45 daysfollowing the date when the company became insolvent. The company officers whofail to file for insolvency would be exposed to a “prohibition to manage” sentence.The failure to file for insolvency may also be considered a management fault, andmay trigger the officer’s liability for insufficiency of assets.i. Directors’ and Officers’ LiabilityUnder French Law, the main action against de jure or de facto managers of the entitysubject to Liquidation proceedings is the action in insufficiency of assets(“insuffisance d’actifs”). These provisions apply to the managers of private lawentities as well as to individuals who serve as permanent representatives ofmanaging legal entities.The action may be initiated within three years following the opening of theLiquidation proceedings and only by the liquidateur, the Public Prosecutor or by thecontrollers. Evidence has to be brought that:• the concerned company is facing a situation of insufficiency of assets, -- that is an excess of liabilities over assets; and• a management fault has been committed by the concerned manager;and• such management fault has contributed to the insufficiency of assets.Case law considers that a management fault does not result from a decision thatwas made in the ordinary course of business with reasonable care, and that turnedout to be a “bad decision” for the company. A management fault is generally46