Reform of corporate crises: new obligations for supervisory bodies

The main changes include the introduction of new obligations for the company’s supervisory bodies, auditing firms, and the independent auditor. In particular, these parties will now have to:

  1. 1. verify that the administrative body constantly monitors the adequacy of the company’s organisational structure, its economic and financial equilibrium and the outlook for operations;
  2. 2. immediately report to the Board of Directors any well-founded evidence of the crisis. If the company does not adopt adequate remedies after the report received from the control body, the latter will be required to activate the “external” alert procedure, through a report to the corporate crisis resolution body.

The decree no. 14/2019 also introduced a system of reward measures for entrepreneurs who, on their own initiative, submit an application for assisted crisis resolution to the composition body in good time, or apply directly for admission to one of the judicial procedures to regulate the crisis or insolvency.

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