The revision of the new company law has already been underway since 2014 and was finally adopted by Parliament in 2020. Most of the new provisions will come into force on January 1st of 2023. From now on, the board of directors will be obliged to monitor the company's solvency.
Non-transferable and inalienable duties of the board of directors
From now on, monitoring the liquidity and assets of a company will become one of the non-transferable and inalienable duties of the board of directors. The company's ability to pay is considered to be at risk if it is unable to meet its payment obligations for a prolonged period.
Obligations of the board of directors
In addition to the obligations to act in case of loss of half of the capital and over-indebtedness, there are now obligations in case of imminent insolvency. If there are indications of imminent insolvency, the board of directors must take appropriate measures to ensure solvency and, if necessary, other measures to reorganise the company or, if necessary, propose them to the general meeting. The plausibility of the proposed measures must be verified by an approved auditor. In the event of imminent insolvency as well as in the event of a loss of half of the capital and over-indebtedness, action must be taken with due speed in accordance with the law.
