This article continues our Law-Now series "Harmonisation of Insolvency Laws in the EU" in which we provide an overview of the articles addressing insolvency avoidance actions of the draft EU directive.

As explained in the first part of the series, the differing national insolvency regulations of the 27 EU member states creates risks for investors, who will have to consider their investments in light of possible business failures and the resulting exposure to monetary losses.

In a recent decision, the German Federal Supreme Court addressed the applicability of the Business Judgement Rule to insolvency administrators in Germany and rejected the applicability of the rule in the specific case that was argued before it.