Chapter IV: Alert procedure

When the statutory auditor of a public limited company, in the course of carrying out his duties, identifies facts likely to jeopardise the company’s ability to continue as a going concern, he shall inform the chairman of the board of directors or the management board in accordance with the conditions laid down by decree in the Conseil d’Etat. If there is no response within fifteen days, or if the response…

In companies other than sociétés anonymes, the statutory auditor shall ask the manager, under conditions set by decree in the Conseil d’Etat, for explanations of the facts referred to in the first paragraph of article L. 234-1. The director must respond within fifteen days. The reply must be sent to the works council or, where there is none, to the employee representatives and, if there is one, to the supervisory…

In commercial companies, the works council or, failing this, the employee delegates exercise the powers provided for in articles L. 422-4 and L. 432-5 of the Labour Code. The chairman of the board of directors, the management board or the managers, as the case may be, shall communicate to the statutory auditors the requests for explanations made by the works council or the staff representatives, the reports sent to the…

The provisions of this chapter shall not apply where conciliation or safeguard proceedings have been initiated by the directors in accordance with the provisions of Titles I and II of Book VI.