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 India:
1) When does a company need to file for insolvency in India?
Under the Indian insolvency regime, a company is subject to insolvency proceedings when: (i) it fails to meet its payment obligations and its creditors initiate insolvency proceedings against such company; or (ii) the shareholders of the company voluntarily decide to liquidate the company. MORE
2) What liability risks exist for the management in India in a corporate crisis?
The liability of the management is two-fold: employer-employee risk and business risk. Employer-employee means that the management is responsible for ensuring that a safe working environment is maintained, and the company adheres to regular directions and guidelines. MORE
3) Is there any state aid available for companies in India due to the Corona crisis?
At present no state aids or support measures have been announced or are being offered by the governmental authorities. However, there have been press reports that government agencies have been speaking with various industry stakeholders to understand their concerns. MORE
4) What immediate measures should an Indian company take if it is affected by the Corona crisis?
To a certain extent, the immediate measures a mangement may take or implement is industry specific (as some industries will be affected more than others). Some immediate measures the management may undertake are as follows. MORE
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