In a recent decision, the Swiss Federal Supreme Court has clarified equitable subordination risks in connection with shareholder loans. The key takeaways are as follows:
A special administration regime for Payment and Electronic Money Institutions (PIs and EMIs) was established in The Payment and Electronic Money Institution Insolvency Regulations 2021 (the Regulations).
A special administration regime for Payment and Electronic Money Institutions (PIs and EMIs) was established in The Payment and Electronic Money Institution Insolvency Regulations 2021 (the Regulations).
Background
Under Dutch law, the directors of a (private) company can be held personally liable by the trustee for the bankruptcy deficit. Liability can arise when the directors have manifestly performed their management duties improperly and if it is reasonable to assume that bankruptcy was declared as a result. Section 2:248(4) of the Dutch Civil Code (DCC) contains a list of grounds for reducing the amount of the directors’ liability.
Decision
Since Article 3: 305a of the Dutch Civil Code entered into force on 1 July 1994, a legal person (usually a foundation) can institute legal proceedings that serve to protect interests outlined in its articles of association (for example, recovering damage caused to the members of the foundation concerned). The mass claims foundation was born.
On 1 January 2021, new Dutch restructuring law Wet Homologatie Onderhands Akkoord (or WHOA) came into effect. Here, we run through what WHOA is and cover the first decisions handed down under the new law.
What is WHOA?
The number of bankruptcies in the Netherlands is rising.
Therefore, in mid-April, a number of professors, insolvency practitioners, employers and labour unions petitioned to accelerate the introduction of WHOA (Wet Homologatie Onderhands Akkoord – the Act on Dutch Court Confirmation of Extrajudicial Restructuring Plans to Avert Bankruptcy), the introduction of which was already planned.
Unfortunately your business can be confronted with bankruptcy of one of your (Dutch) business partners. In most cases this will damage your business. We can help you to avoid or limit damages. In this edition of TW FOUR we will set out FOUR ways to protect your business from the bankruptcy of one of your (Dutch) business partners.
On March 8, 2019, the Swiss Federal Council instructed the Federal Department of Finance to initiate the consultation process on proposed amendments to the Banking Act.
The proposed amendments aim at increasing the effectiveness, and legal basis, of certain bank resolution measures and related topics.
Interested parties can comment on the draft proposal until June 14, 2019.
Restructuring procedure for banks
Op insolventiegebied heeft de Hoge Raad in 2016 een aantal interessante uitspraken gedaan.