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 Algeria:
1) When does a company need to file for insolvency in Algeria?
Pursuant to article 215 of Algerian Commercial Code, “every commercial legal entity or merchant and even a non-commercial individual, who ceases to pay its debts, must declare (file a declaration) such non-payment within 15 days in order for opening of a judicial procedure of bankruptcy/insolvency”. MORE
2) What liability risks exist for the management in Algeria in a corporate crisis?
There is no specific legal provision related to the liability risks threatening management in Algeria in the corporate crisis. However, the management remains liable (civil and criminal liability) toward the company, third parties, and the employees even during crisis period. MORE
3) Is there any state aid available for companies in Algeria due to the Corona crisis?
No state aids have been issued for the moment by the Algerian Government. However, the General Tax Administration has announced some measures in order to help the companies during the Corona Crisis in term of tax payment. MORE
4) What immediate measures should an Algerian company take if it is affected by the Corona crisis?
There are no legal provisions related to the immediate measures that the management of a company should in Algeria take if it is affected by the Corona crisis. However, in practice, we have noticed that some companies have implemented the following measures in order to protect the spread of the virus and affect the employees’ health. MORE
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