Limited liability companies and stock companies must file for the opening of insolvency proceedings if they are unable to pay their open debts (illiquidity) or over-indebted without a positive prognosis. If such ground to file for insolvency has occurred, managers are obliged to file for insolvency as soon as possible, but at the latest within 60 days. Otherwise they are personally liable - without limitation - for damages caused by a delayed filing for insolvency (i.e ...
Can a company collect data about a (potential) infection with COVID-19? Both, in case of information on a suspected case and in a confirmed case, special categories of personal data are processed. Whether a company may process such health data of employees, customers, suppliers or other third parties is exclusively governed by Art 9 GDPR ...
When should we hold our annual shareholders' meeting this year? The shareholders' meeting of a stock corporation must be held each year within eight months as of the end of the financial year. Therefore, if the financial year corresponds to the calendar year, there is time until the end of August. If possible, we would therefore recommend holding the annual shareholders' meeting a bit later this year in order to be better prepared ...
I. RISK TO COMPANIES FROM THE IMPACTS OF THE CORONA PANDEMIC The corona pandemic leads to a decline in sales revenues worldwide. Demand is plummeting. At the same time, supply chains in the globally networked economy are no longer reliable. Obligations to pay compensation for the inability to supply are impending, particularly in cases of no-fault supply guarantees. The liquidity and therefore the continued existence of many companies are at risk ...
A. SHORT-TIME WORK 1. WHAT IS THE LEGAL POSITION? According to the "Act on the temporary crisis-related improvement of the regulations for short-time work compensation" ("Gesetz zur vorüberristeten krisenbedingten Verbesserung der Regelungen für das Kurzarbeitgeld") (see preliminary version of BT publication 19/17893), a company can order short-time work due to the worldwide cases of illness caused by the coronavirus and thus reduce working hours ...
Are delivery obligations between businesses still to be fulfilled? In principle, commercial contracts and the rights and obligations contained therein remain legally binding, despite the official measures taken to prevent the spreading of COVID-19. However, in connection with travel contracts, the Austrian Supreme Court qualified the outbreak of the infectious disease SARS as a force majeure event that made it unreasonable to perform the contract ...
As part of Spilman's and our COVID-19 Task Force's continuing effort to partner with you during this public health emergency, we’ve been monitoring Congress’ work on the Families First Coronavirus Response Act ("Act"). This now has passed both houses and all indications are that it will be effective within weeks. Even in its short history, the bill has seen some significant changes. This is the final form ...
Discussing the legal concept ‘Force Majeure’ in credit agreements – if it can be called upon, it has in principle a temporary nature and does not relief you from payment obligations. In general, force majeure is an unforeseeable and unavoidable event that occurs after a credit agreement has been concluded (i.e ...
The Corona crisis is not only a huge challenge for health care, but also the consequences for the economy will be enormous. Different sectors (such as the hospitality sector and the transport sector) will not be able to overcome the difficult times we are currently facing without public support ...
The coronavirus crisis could make the ability of a business to perform pending contracts harder. Even though so-called ‘hardship’ clauses are perfectly valid and enforceable under Belgian law, hardship is not generally accepted as a principle of Belgian contract law. Until the rules on obligations of the new Civil Code, which recognise hardship, enter into force, there are exceptions and creative ways to deal with this problem ...
EUIPO On 16 March 2020, the Executive Director of the European Union Intellectual Property Office (EUIPO) has issued Decision No EX-20-3 extending all time limits expiring between 9 March 2020 and 30 April 2020, that affect all parties before the Office, to 1 May 2020. In principle, the new deadlines will not be communicated to the parties on a case-by-case basis ...
All shops, bars, restaurants and leisure centres will be closed at least until 6 April 2020. Only grocery stores, pet food stores, pharmacies, banks, post offices and book shops will remain open until that date insofar as the social distancing (at least 1 meter distance) can be guaranteed. Night shops can stay open until 10 pm insofar as social distancing is applied. Food stalls on markets are only allowed insofar as considered essential ...
Our colleagues have discussed the application and interpretation of force majeure clauses in contracts related to COVID-19 disruptions. These clauses are included in a contract by the parties and spell out the circumstances under which performance will be excused during one of the specified circumstances, such as natural disaster, disease, epidemic, or pandemic ...
On March 16, seven Bay Area counties issued "shelter-in-place" restrictions, which create compliance issues for cannabis operations licensed as dispensaries or as delivery services ...
At Patterson Belknap we continue to diligently monitor the outbreak of the COVID-19 coronavirus and assess the potential legal and business issues that may arise relating to the virus. The situation is fluid, and best practices and guidelines are evolving in real time. We are closely monitoring the situation as it unfolds, and share our latest perspectives on the legal issues relating to COVID-19 below ...
Over the last few days, Judge Lawrence K. Marks, the Chief Administrative Judge of the New York State Unified Court System, issued two memoranda bearing on COVID-19’s effect on the Commercial Division. First, by memorandum dated March 13, 2020, Judge Marks announced that he and Chief Judge Janet DiFiore have implemented a number of measures to prevent the spread of COVID-19 and protect the well-being of court personnel ...
The 30-day state of emergency was proclaimed by the President of Romania, in the context of the COVID – 19 outbreak in Romania. The Decree no. 195/2020 (the “Decree”) instituting such state of emergency is effective as of 16 March 2020 and substantially impacts not only the day-to-day life, but the businesses too ...
As the COVID-19 pandemic continues to spread across the globe, disrupting lives, communities and businesses, and putting countries under considerable strain, Nestor Nestor Diculescu Kingston Petersen (NNDKP) has set up the COVID-19 –Legal & Tax Resource Center. Thereyou can access valuable knowledge and legal insights with respect to the implications of the coronavirus in various fields in Romania ...
The Dubai Multi Commodities Centre (DMCC) Authority has recently issued new company regulations (the Company Regulations 2020). The Company Regulations 2020 came into effect on 2 January 2020 and they repeal and replace the previous DMCC Company Regulations 2003 (DMCC Regulation No. 1 of 2003, as amended by DMCC Regulation No. 1 of 2007, DMCC Regulation No. 1 of 2009 and DMCC Regulation No. 1 of 2013) (the Previous Company Regulations) ...
On 30 January 2020, the World Health Organisation (WHO) declared the outbreak of the new coronavirus, (subsequently renamed as COVID-19), “a public health emergency of international concern”. Various unprecedented and draconian measures were imposed by the PRC Government and other governments around the world, namely, a city lockdown, travel restrictions and bans, extension of the Lunar New Year holidays, mandatory quarantine orders, border closures, etc ...
1. Introduction On 18 March 2020, the Decree #CuraItalia1 introduced “measures to strengthen the national health ser- vice and economic assistance to families, employees and companies related to the epidemiological emer- gency of COVID-19” (the “Decree #CuraItalia”) ...
The main doubts of company directors about the consequences ofthe current Covid-19 pandemic in relation to insolvency, the PER, and the RERE. As a result of the spread of the Covid-19 virus, the World Health Organization declared a public health emergency of international concern (PHEIC) on 30 January 2020 and a pandemic on 11 March 2020 ...
March and April are the months during which companies generally hold their annual general meeting of shareholders (GMS) having on the agenda the approval of the financial statements, of the budget and of the business plan. The annual GMS is particularly important as it gives the opportunity for shareholders to meet and discuss directly with the management and the other shareholders on the past and future activity of the company ...
Tips on how to mitigate losses: Mall Leases: Mall leases have ceased to be in the nature of a tenancy agreement. The clauses are no longer limited to availability of the premises, rent, lock-in period, repairs, and exit. Mall owners have come to impose sale targets on the retailers operating from their malls. Rent consists of both a percentage of the revenue earned by the retailer as well as a fixed monthly payment ...
