The Higher Regional Court of Hamburg (OLG Hamburg, 25 June 2010, 11 U 133/06) ruled that the business continuation prognosis according to § 19 (2) of the German Insolvency Code is based only on the view of a prudent director at the time of assessment. Subsequent findings concerning the director's assessment made on such a basis do not give rise to any liability of the director. In addition, the court held that in exceptional circumstances a director may have more than three weeks after the company has become illiquid or over-indebted to conclude restructuring efforts.
[Read More]Posted by Peter Jark and Andrea München on Monday 13 Sep 2010