In a recent judgment on directors’ liability (Bundesgerichtshof, 18 November 2020, IV ZR 217/19), the German Federal Court of Justice (Bundesgerichtshof) has clarified the scope of D&O insurance coverage, holding that company directors are entitled to its protection.
Background
Was ist zu beachten?
Die Pandemie trifft die Wirtschaft mit voller Wucht und ein Ende ist weiterhin nicht absehbar. Um eine ungeordnete Insolvenzwelle zu vermeiden, hat der Gesetzgeber schnell reagiert und mit dem am 27. März 2020 in Kraft getretenen COVID-19-Insolvenz-Aussetzungsgesetz (COVInsAG) die Insolvenzantragspflicht zunächst bis zum 30. September 2020 suspendiert. Per Verordnung kann die Suspendierung bis zum 31. März 2021 verlängert werden.
Die Hotelindustrie gehört zu den Branchen, die von der Corona-Krise am schwersten getroffen werden. Mitunter geht es um das schlichte Überleben der betroffenen Unternehmen. Wir möchten Ihnen in einem interdisziplinären Webinar einige der drängendsten Fragen beantworten, die Ihnen helfen sollen, durch diese herausfordernde Zeit durchzukommen.
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The German Federal Court of Justice has tightened its grip on company directors again. In a recent judgment on directors’ liability in insolvency situations, the Court clarified the scope of sections 60- 61 of the German Insolvency Act.
In a recent judgment, the German Federal Court of Justice (Bundesgerichtshof) took the opportunity to clarify its position on sec. 17(2) German Insolvency Act (Insolvenzordnung, InsO). According to sec. 17(2) InsO a debtor is deemed insolvent if he is unable to pay his debts as they fall due (Zahlungsunfähigkeit).
A German insolvency administrator represented by Taylor Wessing claims back fees amounting to € 4.5 million from a leading German law firm paid by the insolvent company for restructuring advice. The claim is based on German rescission law.
The Singer & Friedlander Limited Pension and Life Assurance Scheme (the "Scheme") first came to general notice in relation to a case arguing whether the section 75 debt can be subject to a set off due to events after the time from which the relevant figures used in the calculation arose (read our article on Disputed section 75 debt claim).
In the November 2013 edition of Pensions Pieces we referred to the Olympic Airlines case where a UK pension scheme could not qualify for entry to the Pension Protection Fund ('the PPF') because its sponsoring employer was suffering main liquidation proceedings in Greece, and further insolvency proceedings could not be established to satisfy the current entry conditions