Decree-law no. 26/2015, dated 6 February 2015, enacted a set of measures aimed at creating more favourable conditions in Portugal for restructuring companies that are undergoing economic/financial difficulties as well as for implementing long-term funding facilities and introducing new instruments regarding their re-capitalization. This set of measures forms a system – called SIREVE – designed to recover companies (the company) in financial difficulties or about to apply for restructuring to be implemented outside of insolvency court proceedings.
Judgment of the Court of Appeal of Lisbon of 02-06-2015
Interpretation of the intentions of a commercial company – Attribution of communications by members of corporate bodies – Signatures
DOING BUSINESS IN PORTUGAL A legal and tax perspective This guide provides general information to investors intending to operate in Portugal on legal issues on which they may need advice. It is not intended, and cannot be considered, as a comprehensive and detailed analysis of Portuguese law or, under any circumstances, as legal advice from Cuatrecasas, Gonçalves Pereira. This guide was drafted on the basis of information available as of October, 2015. Cuatrecasas, Gonçalves Pereira is under no obligation and assumes no responsibility to update this information. All rights reserved.
The Fiduciary Duties of Directors
When a company enters the zone of insolvency (the so-called “twilight zone”), conflicts of interest between the company, its shareholders and the different stakeholders, such as creditors, are ignited and the pressure on directors for contradictory forms of action is intensified.
Judgement No. 362/2015 - Official Gazette No. 186/2015, Series II of 09/23/2015
The Constitutional Court ruled unconstitutional the provision of Article 100 of the Insolvency and Corporate Recovery Code, approved by Decree-Law No. 53/2004, of March 18, if interpreted as the declaration of insolvency provided therein suspends the limitation deadline of tax debts attributable to the responsible subsidiary responsible person according to the tax procedure.
Judgment of the Supreme Court of 08/10/2015
Judgment of the Court of Appeal of Porto of October 8, 2015
Culpable insolvency – Duration of disqualification of the insolvent party
Judgment of the Court of Appeal of Porto of February 15, 2016
The Portuguese Official Journal (Diário da República) published last 30 May Act no. 32/2014, approving the new pre-enforcement out-of-court procedure.
The above referred procedure will come into force on 1st September 2014 and will be available to creditors with enforceable instruments that may be relied on in summary enforcement proceedings (judgments, orders for payment and extrajudicial instruments regarding overdue pecuniary obligations).
Judgment of the Supreme Court of Justice of 20-03-2014 Standardization of Jurisprudence – Insolvency Proceedings – Right of Retention
Judgment of the Supreme Court of Justice of 1 July 2014
This judgment concludes that the Insolvency Plan is an alternative corporate recovery measure which aims to satisfy the interests of the creditors, which applies indiscriminately to natural and to legal persons. When the insolvent is a natural person, the fact that the liquidation of its assets within the insolvency proceedings took place without the full payment of the claims, is still not enough to declare the release of the debtor.