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
Legal notice: All contents available in the Digitorney Lounge (e.g. templates, checklists, key questions) have been created with the greatest possible care and are constantly updated, but do not claim to be complete and correct. All contents are to be understood as suggestions that must always be adapted to the needs and specifics of the individual case. Digitorney Group B.V. as a provider of this website is not a legal advisor and therefore cannot assume any liability for the impact of the contents available in the Digitorney Lounge on the legal position of the user or the parties using it. Liability for slight negligence is also generally excluded. Further details can be found in our General Terms and Conditions, with which you agree by using the Digitorney Lounge. If you need a customized document, you should seek advice from a lawyer. You can send a search query to Digitorney here.