Background: Financial Backdrop
The Stats
The Government has published the COVID-19 Response (Further Management Measures) Legislation Bill (the Bill), an omnibus bill containing amendments (both temporary and permanent) to several acts. These amendments aim to both assist organisations in effectively managing the “immediate impacts of the response to COVID-19”, as well as mitigating some of the pandemic’s “unnecessary and potentially longer-term impacts on society”.
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The COVID-19 pandemic is posing the biggest existential threat to commercial entities in a generation. Companies across the globe are getting to grips with multiple operational challenges and many are rightly concerned about their business continuity and restructuring options should the pressure begin to become insurmountable.
Die aktuelle Corona-Krise eröffnet Wettbewerbern und Investoren Opportunitäten zum Kauf von Betrieben in finanziellen Schwierigkeiten. Während Betriebe oder Betriebsteile zu einem attraktiven Preis erworben werden können, bergen solche Transaktionen jedoch im Gegenzug verschiedene rechtliche Risiken.
The legal system of the Kingdom of Thailand is based on the civil law legal system. In addition, it is strongly influenced by common law principles. Primary sources of law include the Thai constitution, which is the supreme law, legislation such as codes and acts, decrees and customary principles. Under the current legal system, judicial decisions are not binding; in practice, however, decisions of the Supreme Court are persuasive, have some precedential value and are often used as a guideline for interpretation of the law.
This article is produced by CMS Holborn Asia, a Formal Law Alliance between CMS Singapore and Holborn Law LLC.
Impact of COVID-19 on corporate failures and directors’ conduct
Given the uncertainties surrounding the COVID-19 pandemic, it is anticipated that the number of formal insolvencies in Singapore will trend upwards across numerous sectors as companies see a decline in their financial position.
Colombian State of Emergency
The president of Colombia decreed a State of Emergency on the national territory due to the recent COVID-19 outbreak. He has issued a series of measures to contain its effects on public health and the economy. This chapter will be updated on a daily basis, including the principal measures issued by the national government.
Many companies will likely be forced to deal with debts and liquidity issues – one must act smart and promptly to keep the problems from snowballing,
Advice to creditors
Stop the snowballing effect!
TABLE OF CONTENTS
COVID-19: Summary of Key Issues.................................................................................... 1
During the state of emergency, various pieces of legislation have been published which affect the corporate bodies of companies. Some of the key new provisions affect matters relating to winding up and shareholders’ right of withdrawal.
In this table we outline the new rules that companies must be aware of in relation to the various grounds for winding up, arising from the measures adopted in royal decree-laws 8/2020, 11/2020 and 16/2020. We also analyze how the shareholders’ right of withdrawal has changed at capital companies and at cooperatives.