Sooner or later, every business owner will run into financial problems with a customer, supplier, or possibly his own company. Sometimes bankruptcy is unavoidable. In bankruptcy, the court appoints a trustee to take over the management of the bankrupt company. The receiver sells the valuable parts of the company, such as debtors and assets, and investigates whether there was improper management or voidable legal acts prior to the bankruptcy.
Our attorneys can advise you in advance of bankruptcy and, if necessary, assist you in filing for bankruptcy. We also assist you in the event of a reopening of the bankruptcy or if you, as a director of a bankrupt company, are sued by the trustee. We can also assist you if you are a creditor dealing with a bankrupt customer or supplier.
As your business grows or changes direction, restructuring may be necessary. This involves adjusting the legal and organizational structure of your business to reflect its current activities and future goals. Restructuring can take many forms, including:
Our restructuring specialists will provide you with the right guidance to adapt your business to changing circumstances. This may be due to growth, new activities, collaboration with partners or the sale of part of your business. We advise on the tax, legal and employment aspects of restructuring and ensure that your business is well positioned for the future.
Proper preparation for your own bankruptcy will prevent unpleasant surprises once bankruptcy is declared. Adverse consequences of a customer or supplier's bankruptcy can be limited by drafting good general terms and conditions or by agreeing on collateral in advance and after bankruptcy by timely invoking retention of title or right of recourse.
A corporation can be dissolved in several ways, depending on the situation. A voluntary dissolution is usually done by a resolution of the shareholders. This is followed by a liquidation of the assets, in which all debts are paid and the remaining assets are distributed to the shareholders. If there are no assets left, a turbo liquidation may be used. In cases of insolvency, a judge can declare bankruptcy and appoint a receiver to wind up the company. The receiver then manages the liquidation of assets for the benefit of creditors.
Bankruptcy can be filed by the creditor, the debtor himself, or the public prosecutor. The process begins with a petition filed with the court. The judge assesses whether the company is unable to pay its debts and, if so, declares bankruptcy. A trustee is then appointed to manage and liquidate the bankruptcy. The trustee sells the company's assets to repay creditors as much as possible. The bankruptcy is closed with a final distribution list and any remaining debts are discharged unless the creditor objects.
In a previous blog, we wrote about the Act on Adaptation of Dispute Settlement and Clarification of Admissibility Requirements for Survey Proceedings (Wagevoe). This amendment has now come into force on 1 January 2025. This blog gives a brief overview of the amendment.
On 16 May 2024, the House of Representatives gave the green light and on 4 June 2024, the Senate followed suit: the Wagevoe Bill is now officially law. This new law brings a number of changes to dispute resolution and clarifies the requirements for shareholders and depositary receipt holders of listed companies who wish to initiate an inquiry procedure. As its name suggests, the Wagevoe Act provides greater clarity in this area.
In disputes, there is often much debate about whether general terms and conditions apply to a contractual relationship. General terms and conditions should therefore be declared applicable to the contract in a legally correct manner.
A management decision is a decision made by the board (management) of a legal entity. Board resolutions that are made in writing have few substantive requirements and are in principle free of form. Do you need to prepare a written board resolution, but do not know how to do this?
