Conciliation in a nutshell
Conciliation is an amicable way of settling disputes.
Conciliation, formerly called "amicable settlement”, allows a debtor, natural person or legal person exercising an activity in an independent capacity, to request the appointment of a conciliator in order to negotiate an agreement with his creditors.
Conciliation may be conventional: parties may agree, when signing a contract, to choose conciliation as an amicable way of settlement in the event a dispute arises. Conciliation may also be judicial: the commercial court might appoint the Chamber as conciliator by order, setting the purpose of its mission, its duration, and the conditions of its remuneration. The conciliator is then appointed for a period not exceeding 4 months but extendable by one month following his reasoned request.
Conciliation shall be confidential: any person called to a conciliation procedure or who, by virtue of his duties, is aware of it, is bound by confidentiality.
Conciliators, generally court administrators, have extensive experience in commercial matters. As opposed to arbitrators, a conciliation shall not judge or render an award. His mission is to promote the conclusion of an amicable agreement intended to put an end to the disputes and the difficulties that they entail.
Like a mediator, the conciliator is a third-party to the dispute, he is necessarily independent and impartial, but unlike the mediator whose mission shall lead to the parties signing an agreement or contract specifying the future conduct of the parties, conciliation, if successful, only leads to an amicable agreement.
Faster and less costly than a traditional legal procedure, conciliation thus makes it possible to settle commercial disputes amicably with the help of the conciliator.
