Judicial Settlement as a Preventive Mechanism against the Financial Distress of Joint-Stock Companies under Algerian Law

Abstract

A joint-stock company is regarded as the ideal model of capital companies due to the legal implications arising from its financial nature. It is also considered the largest type of company in terms of the volume of shares issued to form its capital through either public or private subscription. Given the importance of this type of company in establishing the economic infrastructure of states, upon which economic investment and its continuity toward sustainable development subsequently depend, it has become imperative for the Algerian legislator to provide a legal mechanism capable of rescuing joint-stock companies from financial distress whenever it occurs and preventing them from reaching bankruptcy, which ultimately leads to their dissolution.

Judicial settlement is considered the legal mechanism proposed to protect joint-stock companies from bankruptcy resulting from temporary financial distress. This raises the following questions: To what extent is the judicial settlement mechanism effective in ensuring the continuation of the activities of a financially distressed joint-stock company? Can the judicial settlement system be applied to all types of financial distress affecting joint-stock companies, or is it limited to a specific type of financial distress that can only be addressed through judicial settlement? These questions are examined in this article entitled: "Judicial Settlement as a Preventive Mechanism Against the Financial Distress of Joint-Stock Companies under Algerian Law."