Adequate corporate arrangements and crisis signals: directors’ obligations

Every company in corporate or collective form must adopt arrangements proportionate to its nature and size, capable of detecting the state of crisis in good time: overdue debts to employees, suppliers and the tax authorities beyond the thresholds, debt sustainability over twelve months and going-concern prospects are the signals directors must monitor.

Inaction exposes directors to management liability, also at the initiative of creditors and insolvency estates; a twelve-month treasury budget, periodic monitoring of the indicators and early access to the negotiated settlement are the tools practice regards as adequate.

Summary note by the CommercialistiAvvocati network, based on specialised legal and practice sources. The text does not reproduce original contributions and does not constitute professional advice.