The Off Topic Topic

[celedhring]

Language/law question: what's the proper name for the procedure where a court appoints some external administrator for a company that's being investigated for economic crimes?

[Josquius]

In administration?

[celedhring]

So you would say something like "The company was placed under administration", just that?

[Admiral Yi]

I've never really heard of anything like that.

The closest I can think of is the appointment of a Special Master to unwind competing claims on assets, like in the Bernie Madoff case.  But he didn't continue to operate the company, the company was dead at that point.

[Oexmelin]

Didn't you ask the exact same question, a while back?

(Not a reproach - I just have a powerful sense of déjà vu, or rather, déjà lu...)

[celedhring]

Did I? 

It's entirely possible.

[Admiral Yi]

Then you have the TARP situation, where the CEO of AIG was appointed by the executive, and at least one other financial institution CEO was canned on their say so.  But that was not connected to a crime, and it was special circumstances related to the melt down authorized by limited legislation.  At least in my understanding.

And of course in Chapter 11 bankruptcy filing the court has to give approval to the restructuring plan.  But again, not in relation to criminal wrongdoing.

I don't think we have that.

[celedhring]

Over here we do. It's not supercommon, but a court can appoint administrators if the people running a company are being investigated by some kind of financial malfeseance, to ensure no assets are distracted, etc... until the investigation is complete.

[Sheilbh]

It doesn't ring a bell here either - the process would be administration but that's generally for insolvency and it's the administrator or liquidation which has a court-appointed official receiver.

[Oexmelin]

Over here we do. It's not supercommon, but a court can appoint administrators if the people running a company are being investigated by some kind of financial malfeseance, to ensure no assets are distracted, etc... until the investigation is complete.

This sounds like the French "tutelle". What is it in castellano?

[celedhring]

"intervención judicial"

[Oexmelin]

The Canadian government's official translating database suggests receivership.

https://www.btb.termiumplus.gc.ca/tpv2alpha/alpha-fra.html?lang=fra&i=1&index=enr&srchtxt=RECEIVERSHIP

[ulmont]

The Canadian government's official translating database suggests receivership.

https://www.btb.termiumplus.gc.ca/tpv2alpha/alpha-fra.html?lang=fra&i=1&index=enr&srchtxt=RECEIVERSHIP

I think that's correct for the US as well, although I've never seen it for crimes (sometimes for civil lawsuits and sometimes when banks collapse).

[The Minsky Moment]

I think that's correct for the US as well, although I've never seen it for crimes (sometimes for civil lawsuits and sometimes when banks collapse).

yes and yes.
If the probe is serious enough to throw the integrity of company leadership in question then usually the board and management will turn over; a receivership would be a pretty drastic remedy just because there is a criminal investigation unless there is also an insolvency.

[crazy canuck]

I think that's correct for the US as well, although I've never seen it for crimes (sometimes for civil lawsuits and sometimes when banks collapse).

yes and yes.
If the probe is serious enough to throw the integrity of company leadership in question then usually the board and management will turn over; a receivership would be a pretty drastic remedy just because there is a criminal investigation unless there is also an insolvency.

The nuclear option for Derivative Actions here as well (for the non law talkers, when actions are being taken against the company's interest by insiders and an application is made to bring court proceedings in the company's name to protect the company).  Although it is very rare to get a receiver appointed - normally the applicant just gets the right to pursue the legal claim on behalf of the company.