In three similar decisions of 17 March 2015[1] the Austrian Supreme Court (“OGH”) clarified how insolvency proceedings may affect an already pending arbitration.
Introduction
As of 1 January 2015, the Au;trian criminal procedure code ("StPO") ctifferentiates between suspects (Verdachtiger) and
subJect to loose and unsubstantiated
Welcome to our guide for directors and prospective directors of subsidiary companies in Austria.
Capital measures are common reorganisation measures when a capital company is in financial crisis, including eg injection of fresh capital by way of a capital increase. The implementation of capital measures during financial crisis is often a source of dispute amongst shareholders, in particular if the capital measures are driven by a financially strong majority shareholder.
With effect as per 1 July 2013, the Austrian legislator has enacted an amendment to the Limited Liability Companies Act (GesRÄG 2013) providing primarily for a de-crease of the minimum share capital to EUR 10,000, as well as a decrease of the formation costs. These changes are aimed at maintaining Austrian limited liability companies’ competitiveness in comparison to other European limited capital compa-nies and to fostering the formation of new limited liability companies also by small service providers.
The COVID-19 pandemic is an unprecedented world health crisis which has undoubtedly caused significant disruption to the growth, function and stability of the global economy. As a result, many corporations have experienced and will continue to experience a significant reduction in their commercial activity in the near term.
When your business first begins to have financial difficulties, you should take action quickly to increase its stability. You have options such as refinancing and consolidating, or you can look to insolvency or liquidation proceedings.
First, assess your business's true financial situation. You may need to review the bookkeeping or talk to an accountant about your profits, losses, and debts. Be realistic about how much you can improve the finances and in how long of a time period. If you are already having trouble paying the bills, then you need to act fast.
1) Debtor prepares OCLPP plan & obtains approval from creditors:
- more than 50% non-secured creditors (total of principal claims);
- at least 2/3 secured creditors (total of principal claims).
Who may not vote (on approval the plan): persons in the same group of companies, shareholders (natural persons) with decisive influence and persons who acquired claims against the debtor from the aforementioned persons within the previous 2 years.
2) Debtor and creditors agree on supervisor's candidate during OCLPP.
Right to carry out profit-making activities without limitation
Under the regime provided for by the Belgian law of 27 June 1921 (the Law of 1921), INPAs are prohibited from carrying out industrial or commercial operations unless the latter remain ancillary to their non-profit activities.