The Office of the Public Prosecutor calls for strict activation of its competencies in business insolvency cases
The Office of the Public Prosecutor has urged all public prosecutors across the country to positively activate their legal competencies within the framework of business insolvency procedures, in accordance with the provisions of Law No. 73.17 relating to the reorganization of Book Five of the Commercial Code, with the aim of establishing legal and economic security and enhancing the business climate in the Kingdom.
In a statement, the Office emphasized that this legal framework aims to support the continuity of businesses within the economic structure, ensure the preservation of jobs, and protect the rights of creditors, thereby contributing to encouraging investment and improving the business environment in Morocco.
The Office clarified that the legislator has granted the public prosecutor central powers to protect the economic public order, including the ability to request the initiation of settlement or judicial liquidation procedures for companies that are unable to pay their debts, as well as filing appeals and applying civil penalties and the suspension of commercial eligibility when necessary.
Despite the positive outcomes since the law came into force, the statement noted that there are signs of delays in implementing its provisions, including a lack of initiative from some public prosecutors to request the opening of procedures, absences from court sessions, reliance on standard requests, and a decrease in the exercise of appeals.
In this context, the Office of the Public Prosecutor called for an enhancement of serious engagement with the law, increased presence in court sessions, submission of precise legal requests, and support for struggling businesses, ensuring that requests for extensions and necessary penalties are issued when needed, and activating appeal procedures along with strict oversight of the trustees’ performance.
The importance of actively contributing to the preparation of judicial files and providing reports on potential economic crimes such as bankruptcy was highlighted, along with a call to monitor the execution of tasks by the trustee and to submit requests for their replacement when necessary.
The statement concluded by reiterating that these directives are part of a strategic perspective that enhances the role of the Office of the Public Prosecutor in safeguarding the national economy and achieving judicial efficiency, urging that updates on implementation and suggestions to overcome potential obstacles be shared.
