The Corona Crisis leads worldwide to critical situations for companies. In light of this, Digitorney has asked lawyers from various countries specialized in restructuring law for recommendations on what needs to be done and which solutions are at hand to weather the Corona Crisis. This part of our series focuses on Singapore:
1) When does a company need to file for insolvency in Singapore?
In Singapore a company is deemed insolvent when (1) it is unable to pay its debts as they fall due or (2) if its liabilities exceed its assets. As directors owe fiduciary duties to the general body of the company’s creditors, the directors should consider – but are not obliged to – place the company in liquidation in the above situations. MORE
2) What liability risks exist for the management in Singapore in a corporate crisis?
The markets indicate that a recession is possible as companies continue to face pressure in the breakdown of international supply chains, disruptions to manufacturing, cash flow issues and labour shortages. Companies will need to consider their obligations in response to government announcements, business disruptions and other commercial risks arising from the Corona crisis. MORE
3) Is there any state aid available for companies in Singapore due to the Corona crisis?
The Singapore Government has introduced the following measures to help companies and workers stay afloat: MORE
4) What immediate measures should a company in Singapore take if it is affected by the Corona crisis?
Companies should consider the following measures to manage and mitigate potential insolvency risks in Singapore: MORE
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