The Journal of Modern Research on Administrative Law

The Journal of Modern Research on Administrative Law

Investigation the administrative procedure of bankruptcy prevention in France and the possibility of its application in Iran's administrative law system

Document Type : Original Article

Authors
1 Doctoral student of private law, Adalat University
2 Assistant Professor, Department of Law, Damavand Branch, Islamic Azad University, Tehran, Iran
10.22034/mral.2022.557170.1336
Abstract
In line with preventive judicial policies, the issue of bankruptcy prevention has been raised, and the French government has been very successful in this regard. Despite the high rate of bankruptcy in our country, this research was conducted with the aim of investigating the administrative procedure of the French government in this case and the possibility of applying this model in the legal system of our country. The research method was analytical-descriptive. It was concluded that despite the fact that the main laws of France were written, the administrative law system of this country had a certain influence of customs and without respecting the hierarchical issues, the institutions cooperated properly with each other and determined their legal responsibilities according to customs. The division of bankruptcy into two types, apparent and real, has the main effect on the adopted administrative mechanism of prevention, and the general policy of the authorities of this country is not to convert the type of suspension from apparent to real. In our country, due to the limitation of administrative affairs to legal documents and strictness in this matter, especially in the matter of hierarchy, it has not been possible to implement this model, and it is necessary that appropriate legal documents be prepared in this regard and the exact details of responsibilities should be clearly mentioned.

Highlights

In line with preventive judicial policies, the issue of bankruptcy prevention has been raised, and the French government has been very successful in this regard. Despite the high rate of bankruptcy in our country, this research was conducted with the aim of investigating the administrative procedure of the French government in this case and the possibility of applying this model in the legal system of our country. The research method was analytical-descriptive. It was concluded that despite the fact that the main laws of France were written, the administrative law system of this country had a certain influence of customs and without respecting the hierarchical issues, the institutions cooperated properly with each other and determined their legal responsibilities according to customs. The division of bankruptcy into two types, apparent and real, has the main effect on the adopted administrative mechanism of prevention, and the general policy of the authorities of this country is not to convert the type of suspension from apparent to real. In our country, due to the limitation of administrative affairs to legal documents and strictness in this matter, especially in the matter of hierarchy, it has not been possible to implement this model, and it is necessary that appropriate legal documents be prepared in this regard and the exact details of responsibilities should be clearly mentioned.

In general, it is said that "prevention is better than cure" for any adverse phenomenon, and this has become a proverb. Sometimes the treatment of an undesirable phenomenon is practically not possible, and the public opinion points towards the officials who could prevent this problem from occurring. For example, regarding the issue of earthquakes, due to the fact that no definitive solution has yet been provided to deal with it, public opinion requires governments to build earthquake-resistant houses, as this practice has been successfully implemented in Japan. There is also this discussion regarding bankruptcy. For various reasons, a businessman (natural/legal entity) may owe more than his assets. In this case, even assuming his criminal punishment, the creditors are faced with loss of property and the legal system is practically unable to enforce the rights of these people. If the phenomenon of bankruptcy spreads in the society, the economic security will be damaged and the investors will not be willing to participate due to the fear of losing their property. Unfortunately, the legal-executive-administrative procedure of our country regarding the prevention of bankruptcy is very weak, and from time to time, the news of massive property damage is published in the media. But the noteworthy point is that the French legal system pays special attention to the prevention of this issue and this issue has a special place in the administrative law of this country.

In 2018, during a study, administrative coordination in France was cited as a success factor in preventing bankruptcy. Elsewhere, appropriate judicial procedures in this country were considered to be the reason for the reduction of bankruptcy in this country. At the same time, the combination of the type of legal system of this country in the form of "common-law" and "written" has been considered as a factor for increasing administrative authority in dealing with bankruptcy. In the statistical analysis of bankruptcy, the French administrative law system has been evaluated as relatively successful.

International researches have mainly examined and praised the success of the French legal system in reducing bankruptcy. But the factor of success in this country has not been examined in terms of content. At the same time, the research regarding the prevention of bankruptcy in Iranian law, especially in the administrative sector, is completely new and has no background. Therefore, this research is innovative in its own way.

The main topic of bankruptcy is one of the topics related to private law and has no place in the field of administrative law. However, the success of the French government in preventing bankruptcy is related to the specific administrative system of this country, and the measures taken within the framework of the administrative law of this country have led to the reduction of bankruptcy in this country. Despite the fact that the laws of France are written, the administrative system of this country has followed customs, which sometimes originated from obsolete orders of officials who are not in power today; But the related legal custom has been formed and due to the proper efficiency of these measures, the authorities do not object to the lack of a legally binding administrative document. Therefore, the specific administrative law system of France is considered a suitable platform for the prevention of bankruptcy, which needs to be investigated in order to implement a similar model in other countries, but the current research, despite the issue of bankruptcy, which is one of the subjects of private law, is within the scope of legal research subjects. There is also a public and administrative place.

The research question is what are the success factors of the French legal-executive system in dealing with bankruptcy, from the point of view of administrative law, and how can it be implemented in Iran's administrative law system. The aim of the research is to answer the mentioned question.

The hypothesis of the research is that it seems that complete laws and at the same time appropriate administrative powers and coordination in France in order to deal with the prevention of bankruptcy is the reason for the success of this country and this is important due to the lack of executive documents and administrative obligations in our country, currently the ability It is not effective. At the same time, with the effort of responsibility, this task can be realized.

After the imposition of Western sanctions against Iran in the 1990s, the number of bankruptcies increased day by day, and many multi-litigation cases are currently being investigated in the country's courts. Public opinion expects executive and judicial systems to prevent the occurrence of such problems and the duty of the judiciary to prevent the occurrence of crimes. Therefore, it is necessary to carry out this research due to the lack of history of bankruptcy crime prevention in the country.

After examining the relevant concepts, the legal-administrative structure of bankruptcy in France was examined and then the administrative procedure of preventing bankruptcy in France was analyzed. In the following, the possibility of implementing this procedure in Iran's legal system is examined, and at the end, based on the discussions, a conclusion is given, and then suggestions based on it are presented to the authorities.

Keywords
Subjects

 
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1-Electronic commerce law approved in 2002.
2- Trade Law, approved in 1932, with the latest amendments.
3-The Civil Code of Iran, approved in 1932, with the latest amendments.
4- French Civil Code, last amended in 2016.
5- The French Commercial Code, adopted in 1807, with the latest amendments.
 
Volume 4, Issue 13
Fourth year, 13th issue, ّWinter 2022
Autumn 2022
Pages 305-330

  • Receive Date 04 July 2022
  • Revise Date 13 August 2022
  • Accept Date 06 October 2022