Suspension of managers’ duty to file for insolvency proceedings

Many companies will likely be forced to deal with debts and liquidity issues – one must act smart and early to keep the problems from snowballing.

Advice to creditors: stop the snowballing effect

Generally speaking, wrongful trading is the special form of liability where a director of a company is liable for damages towards the creditors for the mismanagement of an insolvent company.

A special feature of the institution of wrongful trading is, that it may give rise not only to the liability of the director of the company but also to the liability of the director, management, employee of the parent company or even of the grandparent company (so called shadow director).