Restructuring
Directors’ Liability in France
Strategic decisions made by management and corporate bodies can have liability consequences in times of financial difficulty. Reactive, structured, and legally secure corporate governance is essential to mitigating risks and ensuring the company’s future. Once legal proceedings have been initiated, such as judicial reorganization, judicial insolvency with continuation of business activities, or judicial insolvency with liquidation, the remaining powers of the management must be examined, as well as how communication with the procedural bodies, such as the insolvency administrator and creditor representatives, must take place.
Our corporate and insolvency law experts support you in organizing corporate management, making strategic decisions, and implementing strategies to avoid or minimize liability and protect management bodies.
Summary
How is management liable in a corporate crisis?
Management is obligated to act with caution, loyalty, and diligence. In the event of mismanagement or delayed filing for insolvency, management may face personal liability, such as liability for missing insolvency assets or professional disqualification.
Our lawyers specializing in insolvency law can explain how to avoid risks, comply with legal obligations, and document strategic decisions. If a dispute arises, we will represent you in court.
What impact is the crisis having on corporate management?
Existing decision-making structures often need to be reviewed and adjusted. Ad hoc crisis or restructuring committees are sometimes necessary, as are strengthened powers for certain management bodies (e.g., the board of directors).
Our lawyers can help you amend articles of association, adjust powers of attorney, and ensure that critical resolutions are recorded in accordance with the law.
What are the risks of inadequate corporate governance?
Inadequate corporate governance can lead to hasty, erroneous, or unlawful decisions and measures. This jeopardizes the company’s stability and future viability and can result in liability for management and a significant loss of trust among creditors and investors.
Our lawyers analyze your governance structures, identify optimization opportunities, and ensure that your decision-making processes are legally compliant.