Different countries frame the exact description of the role of directors of a company in different terms. One feature is common to all – the obligation not to continue trading if a company is insolvent. Again, the detailed implications of doing so vary from one jurisdiction to another. However, this obligation not to continue wrongful trading is at the heart of trust in a market-based economic system
This quick guide summarises the duties that directors of companies incorporated in the Czech Republic are subject to, and how those duties change when the company is insolvent or at risk of being insolvent.
It also gives an overview of the personal risk to directors when the company is in financial difficulty.
Slimming down a company, corporate and financial restructuring will be on minds of many managers and company owners in the coming months.
In practice, when deciding to wind down a company, often a decision needs to be made whether to trigger a regular wind-down (likvidacija), a fast-track wind-down (prenehanje družbe po skrajšanem postopku) or a bankruptcy proceeding (stečaj). The main goal usually is to close down the company with less cost and no liability for the shareholder or the management.
1. What to address first
Als Teil des gesetzgeberischen Maßnahmenpakets zur Abmilderung der wirtschaftlichen Auswirkungen der COVID-19-Pandemie erleichtert das COVID-19-Insolvenzaussetzungsgesetz (COVInsAG) die rechtssichere Finanzierung kriselnder Unternehmen und setzt Anreize an deren Gesellschafterkreise: der Nachrang von Gesellschafterdarlehen und das Erfordernis eines Sanierungsgutachtens sind durch das COVInsAG suspendiert.
This quick guide summarises the duties that directors of companies incorporated in England and Wales are subject to, and how those duties change when the company is insolvent or at risk of being insolvent. It also provides an overview of the p
This quick guide summarises the duties that directors of companies incorporated in England and Wales are subject to, and how those duties change when the company is insolvent or at risk of being insolvent. It also provides an overview of the personal risk to directors when the company is in financial difficulty.
The stark reality of the COVID-19 pandemic on companies, like natural persons, is not a merry one. Akin to natural persons, while some companies will recover, others will not be so fortunate. While companies can indeed use this time to foster innovative business strategies, they need to have the funds to do so. If they don’t? Insolvency (as bleak as it may sound) might be the inevitable route for some, despite their best intentions. Company directors cannot simply abandon ship when things go south.
Earlier this month, in Davis v. Carrington Mortgage Services, LLC, et al., the United States District Court for the District of Nevada held that consumer reporting agencies are not obligated to determine the legal status of debts. The Court also reinforced the plausible pleading standard for Fair Credit Reporting Act cases, while providing an overview of CRAs’ obligations under the act.
Following the imposition of Enhanced Community Quarantine (ECQ) in Luzon, the largest island housing its capital, Metro Manila, the Philippine government enacted Republic Act No. 11469, otherwise known as the Bayanihan to Heal As One Act, declaring a state of national emergency and granting the President special powers to mitigate local transmission of Coronavirus Disease 2019(COVID-19).
With rapid speed, the COVID-19 pandemic has upended the global economy to an unprecedented and unforeseen magnitude. The measures imposed to mitigate the widespread effect of COVID-19 has put the global economy to an abrupt halt.