OPERATIONS IN A CRISIS SITUATION
You have to know relevant legal regulations when incorporating your company, as well as when liquidating it or declaring it bankrupt. Our specialists will help you deal with the most important risks and will draw up an optimal crisis action plan.
§ 1. If an enforcement procedure against a company proves ineffective, members of the management board shall be jointly and severally liable for its liabilities.
§2. A member of the management board can release themselves from the liability referred to in § 1, if they demonstrate that a bankruptcy petition was filed in a right time, or in such time a decision to commence a restructuring procedure or to approve arrangements made in the arrangement approval proceedings was issued, or that due to the failure to file a bankruptcy petition was not caused by their default, or that despite the failure to file the bankruptcy petition and the failure to issue a decision on commencing a restructuring procedure or the failure to approve arrangements in the arrangement approval proceedings the creditor did not suffer any loss.
§3. Provisions of §1 and §2 do not infringe the provisions establishing further liability of members of the management board.
§4. Individuals referred to in §1 are not responsible for the failure to file a bankruptcy petition at a time when the enforcement procedure conducted through compulsory administration or sale of the company is in progress, under relevant provisions of the Civil Proceedings Code, if the obligation to file the bankruptcy petition arose during the enforcement procedure.
Who, being a member of the management board or a liquidator, does not file a commercial company bankruptcy petition despite the emergence of conditions which under relevant legal regulations justify the company’s bankruptcy, shall be subject to a fine, restriction of liberty, or imprisonment for a period of up to 1 year.