Company Administration in Case of Insolvency
Company Administration in Case of InsolvencyUpdated on Thursday 25th October 2018
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The manner in which a Swiss company is administered during the insolvency procedure is given by the Swiss Debt Enforcement and Bankruptcy Law. Provided that the insolvent company is a foreign entity, the rules established by the Swiss Private International Law will apply. During the insolvency procedure, the administration of the company will be concluded following specific regulations, which can be detailed by our team of Swiss lawyers.
What are the main entities involved in insolvency procedures in Switzerland?
The main entities that are involved in the insolvency procedures in Switzerland depend on the specific situation of the respective company, its legal entity and the business sector in which it activates as, for example, in the case of companies operating in the financial sector, special banking regulations will apply. Our law firm in Switzerland can offer legal assistance on the roles that have to be performed during the insolvency procedure by the following entities:
- • during the liquidation procedure of a limited liability company, a liquidator will be appointed to assess the company’s balance sheet, once the company’s shareholders have completed a resolution in this sense (containing the votes of at least two thirds of the company’s owners);
- • the liquidator will also be in charge with the manner in which the company’s net assets will be distributed amongst the creditors;
- • these procedures will have to be concluded prior to the official dissolution of the company;
- • during the insolvency, the company’s directors will still be in charge with their usual tasks and will have to find suitable measures to assure the company’s liquidity.
Roles of the creditors’ committee during Swiss bankruptcy
If the Swiss company is involved in a bankruptcy procedure, the administration of the company will fall under the supervision of a creditors’ committee, which will be in charge with numerous activities. For example, the committee will supervise the management activities developed by the appointed liquidator and it will authorize any court proceedings the company will be involved in.
If it is the case, the committee will also approve arbitration agreements and settlements between the parties. Businessmen who are involved in an insolvency case are invited to address to our team of lawyers in Switzerland for legal advice; our attorneys can also provide legal representation in front of the Swiss court.