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 Austria:
1) When does a company need to file for insolvency in Austria?
In principle, there is an obligation to file for insolvency as soon as the company is either illiquid or, alternatively, in the case of legal persons (or legal entities for which no natural person has unlimited liability, such as a GmbH & Co KG) as soon as the requirements for over-indebtedness are met. MORE
2) What liability risks exist for the management in Austria in a corporate crisis?
In Austria, managers (managing directors, management board members) are in principle not liable for the liabilities of the company. Such a liability can only be considered if legal regulations expressly prescribe this or if the managing director fails to comply with his or her duties of care or violates legal regulations. MORE
3) Is there any state aid available for companies in Austria due to the Corona crisis?
The numerous measures listed below, which the Austrian Federal Government as well as individual federal provinces intend to take to support companies, partly stem from project reports and/or press releases only and have therefore from a legal perspective not yet been fully implemented. MORE
4) What immediate measures should an Austrian company take if it is affected by the Corona crisis?
In order to avoid administrative penalties of up to EUR 30,000 pursuant to Section 3 of the COVID-19 Measures Act, each entrepreneur should check whether his or her own business premises are subject to the prohibition of entry under the Ordinance published in Federal Law Gazette II No 96/2020. MORE
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