Global political crises, volatile interests, inflation and supply chain issues challenge many companies. In this blog series, VISCHER's restructuring & insolvency team will show how companies can navigate through these challenges. Here you will find answers to the most important questions regarding the duties of a director of a Swiss subsidiary.
1. What is the group dilemma and what interests must a Swiss subsidiary's board safeguard?
The new company law, which will come into force on January 1, 2023, provides for numerous adjustments and innovations regarding capital loss, over-indebtedness and (in)solvency. In this article of our blog series on the new company law, we shed light on what will have to be taken into account.
Monitoring liquidity
The COVID-19 regulation on insolvency law set out the conditions under which COVID-19-related over-indebtedness of the company does not to lead to a declaration of bankruptcy by the board of directors (see our blog post "COVID-19 Deferral of Bankruptcy Filing in Switzerland").
What is a debt-restructuring moratorium?
Since 20 April 2020, both the judicial and debt collection pauses have ended. The legal standstill decreed by the Swiss Federal Council in accordance with Art. 62 of the Debt Enforcement and Bankruptcy Act (DEBA) has thus expired. For a business that, despite the emergency aid provided by the Swiss government and the cantons, is still unable to meet its obligations (immediately) but wishes to continue its business activities, the question arises as to how it can obtain creditor protection.
Due to the COVID-19 crisis, many companies in Switzerland could face bankruptcy.
On April 20, 2020, the Swiss (only German) came into force, after an emergency legal freeze ended on April 19, 2020 (see our blog post "Federal Council orders a nationwide stay of debt enforcement proceedings"). However, no end of the corona pandemic is in sight.
What do I need to know as the member of a Swiss board of directors in times of the coronavirus?
The spread of the coronavirus (SARS-CoV-2) is causing turnovers to crash and is plunging the Swiss economy into an unprecedented crisis. If the board of directors fails to respond to this crisis, its members risk becoming liable.
Here you will find the answers to the six most important questions regarding a Swiss board member's duties in the wake of the corona crisis:
Schedule of claims – What is it all about? Once bankruptcy proceedings have been opened over a debtor, the bankruptcy administration must prepare an inventory to determine the extent of the bankruptcy estate. By means of public notice, the creditors and debtors of the bankrupt are requested to come forward (so-called call for claims). Within one month, the creditors must file their claims or other demands against the bankrupt with the bankruptcy administration. Subsequently, the bankruptcy administration draws up a list of claims.
Der Basler ZPO-Tag 2017 vom 3. November 2017 (Programm) befasste sich mit aktuellen praktischen Fragen und Neuerungen rund um die verschiedenen zivil-prozessrechtlichen Verfahren und die Vollstreckung. Für Gläubiger wie auch Schuldner sind insbesondere der Wegfall des Gefährdungserfordernisses beim Arrest gestützt auf Urteile sowie neue Tendenzen bei der Verjährungsunterbrechung durch Betreibung von Bedeutung.
Avoidance Actions – What are they?
Debtors may be tempted to protect assets from access by a possible foreclosure. The avoidance action (also called "Pauliana") gives the bankruptcy administration, and under certain conditions the creditors, the opportunity to challenge such legal acts of the debtor. Upon approval of the actions, the assets will be foreclosed.