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France Forum Kangaroo Court


BIG MAC
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Canvassing opinion here:

Builder we have employed (Devis Insurances etc all above board) has decided to enter voluntary liquidation as he can see business tailing off and in 6 months not having enough for his 5 employees yet paying cotisations etc through the ears.

Chap has elected to fold the business but honour our contracts which apparently he can do as he doesn't need to de-register as an artisan.

Thing that has my warning bells ringing is an offer to reduce the contract sum as overheads will be less etc.

Anyone else heard of people wrapping up enterprises then going alone?

Wondering whether we should mothball the project or persevere.

Thoughts?...........

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Big Mac, it's been a nightmare - exactly the same scenarion - for friends in the village, Brits, who have just been through a similar thing.  The real problem is whether the guys working for him are direct employees or sub contractors.

I'll have a word with them (they don't use the Forum) and see whether they can either email you or speak to you directly.

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Why "kangaroo court"?

Anyroadup, if the contract is with the business that he is winding up, then the liquidator will not be too happy with the builder doing the work and the liquidator not getting any of the dosh. Indeed, the liquidator may (will) come after you for the money.

All the builder can do legit is to finish your job before he liquidates the business. I'd avoid any under the table jobs, because the authorities will be looking for them - a bit too obvious!

 

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Kangaroo Court because a) I like the expression b) You are guaranteed a diversity of views...and not unusual to get one or two from a 'Hanging Judge'!

Nother under the counter at all.

Devis's for work not started under old business will not be acted upon by the 'old' enterprise but rather new Devis will be produced for the same scope but by the new enterprise if you get what I mean?

The builder concerned has assets enough to satisfy any outstanding debts from the old business.

 

 

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Sounds very odd to me. Is he currently operating as a SARL or another form of societe? If he is anything other than an 'entreprise individuelle' then he may well not be registered as an an Artisan himself but employed by his societe. When he closes the societe he would then have to register himself as an Artisan and re-instate his insurance in his name. You would then need a new contract with him for the completion of the works. If he is an entreprise individuelle then from the day he de-registers he has two months to finish off existing contracts and get all his accounts up to date including TVA. I don't what happens about employees in this two month period.

I would also say that, while it is nerve wracking not having a full order book six months ahead, which is what we've been used to for the last few years, things are beginning to look up and if he has survived the last six months then I would have thought work will start coming in from now on.

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Why does everyone automatically think there is some kind of fiddle going on.  Sounds quite responsible to me closing down the business before it gets too bad and there are even greater debts.  In the UK if this type of action was not considered then he may be in even deeper trouble.

Must admit that this is all new to me.  In the UK we spent about 5 years renovating a farmhouse (whilst we were living in it).  We employed plasterers, electricians, plumbers and general builders amoung others and not once did we consider their insurance or if we could claim for faulty work.  Whilst we are not experts in any way we paid for materials either ourselves or immediately upon receipt of invoices and paid a fair agreed rate for work completed once we were happy with it.

I admit I am an optimist always expecting the best outcome and with a bit of common sense on my part in dealing with people, (such as never paying in advance) I have rarely if ever been let down.

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I suspect that when people are on the ropes there is a temptation to bend the rules. Thus far I haven't seen anything to suggest that anything untoward is afoot. I am having to balance a natural liking for the fellow against not being entirely up to speed on the French system for dissolving a business and starting another. I guess my predominant reason for putting the post up is worry, heart says if you trusted the guy then...why not now? Head says draw a line under it, if you wouldn't take the risk here then why take it there...want to help the guy but charity begins at home.
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