The Public Prosecution Office mobilizes its agents to intensify intervention in saving businesses and protecting the economy
The Presidency of the Public Prosecution Office has sent a communication to the public prosecutors and the representatives of the king in commercial appeal courts and primary courts, urging the positive activation of the Public Prosecution’s powers in procedures concerning business difficulties, in implementation of Law No. 73.17 related to the fifth book of the Commercial Code.
The communication emphasized that the correct implementation of this legal framework is of utmost importance due to the mechanisms it carries for protecting the continuity of businesses, preserving job positions, and ensuring creditors’ rights, which contributes to improving the business climate and achieving economic stability.
The Public Prosecution Office confirmed that the legislator has granted the Public Prosecution a central role by enabling it to request the opening of settlement or liquidation procedures, to request the extension of processes, or to apply civil penalties, in addition to exercising judicial appeals. However, practical experience has shown, according to the communication, that some prosecutor’s offices have not reacted as required, either in terms of initiative or presence in sessions or exercising appeals. It was also noted that typical requests were relied upon and that there was a lack of referrals in some cases of bankruptcy or economic crimes related to business difficulties.
To address these issues, the Presidency of the Public Prosecution Office called for adherence to several directives, primarily regular attendance in sessions concerning business difficulties, presenting clear and effective requests, in addition to the necessity of complying with the provisions of the two circulars issued in May 2018 and January 2020, which emphasize the central role of the Public Prosecution in protecting the economic public order.
It also demanded monitoring troubled businesses, submitting requests to open processes when necessary, and exercising legal appeal methods regarding decisions related to appointing or changing the process’s liquidator, or in cases of breaching their duties. It emphasized the need to prepare reports on crimes associated with bankruptcy and to support the professional performance of the liquidator, proposing replacement when necessary.
The communication concluded by underscoring the importance of the precise implementation of these directives to enhance judicial efficiency regarding business difficulties and urged judicial officials to report back to the presidency on the results of implementation and suggestions for improvement, serving national legal and economic security.
