{"id":2660,"date":"2024-06-18T09:49:24","date_gmt":"2024-06-18T09:49:24","guid":{"rendered":"https:\/\/www.isp.law\/duties-of-management-in-the-event-of-impending-insolvency\/"},"modified":"2025-08-12T11:02:22","modified_gmt":"2025-08-12T11:02:22","slug":"duties-of-management-in-the-event-of-impending-insolvency","status":"publish","type":"post","link":"https:\/\/www.isp.law\/en\/duties-of-management-in-the-event-of-impending-insolvency\/","title":{"rendered":"Duties of Management in the event of (impending) insolvency"},"content":{"rendered":"\n<p>Every company can unexpectedly face financial difficulties. In such a case, it is particularly the responsibility of the management to take action. Liechtenstein has clear legal provisions on how to proceed in these situations.&nbsp;<\/p>\n\n\n\n<p>In this blog post, we outline the key steps and duties of the management when financial problems arise.&nbsp;<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>1. Loss of capital<\/p>\n\n\n\n<p>If the latest annual balance sheet shows that half of the share capital is no longer covered, the management must act immediately:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Informing the supreme corporate body (e.g., the general assembly in the case of a public limited company)<strong>:<\/strong> The members of the supreme corporate body must be promptly informed about the financial situation.<\/li>\n\n\n\n<li>Proposing restructuring measures<strong>:<\/strong> Concrete restructuring measures must also be proposed to restore financial stability.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>2. Justified concern of overindebtedness or insolvency<\/p>\n\n\n\n<p>In case of signs of possible overindebtedness or insolvency, the following steps must be taken:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Preparation of interim balance sheets: The management must immediately prepare interim balance sheets based on both going concern and liquidation values. These balance sheets provide an accurate picture of the company&#8217;s financial situation. These balance sheets provide an accurate picture of the company&#8217;s financial situation.<\/li>\n\n\n\n<li>Convene a general meeting of the supreme corporate body: At the same time, management must convene a meeting of the supreme corporate body and apply for restructuring measures.<\/li>\n\n\n\n<li>Filing for insolvency: If the interim balance sheets indicate that the company is insolvent or overindebted with a negative going concern prognosis, the management must inform the court and file for insolvency.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>3. Conclusion<\/p>\n\n\n\n<p>In financial emergencies, swift and decisive action by management is essential. The legal provisions in Liechtenstein provide a clear framework designed to protect the interests of all parties involved.&nbsp;<\/p>\n\n\n\n<p>We support you at every stage of restructuring or (impending) insolvency and help you steer your company back on the right track.<\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Start with us now and contact us at <a href=\"mailto:office@isp.law\">office@isp.law<\/a> or use our fully automated booking tool to schedule a consultation at <a href=\"https:\/\/www.isp.law\/en\/book-an-appointment\/\">https:\/\/www.isp.law\/en\/book-an-appointment\/<\/a> and let us lay the foundations for your business success together.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Every company can unexpectedly face financial difficulties. In such a case, it is particularly the responsibility of the management to take action. Liechtenstein has clear legal provisions on how to proceed in these situations.&nbsp; In this blog post, we outline the key steps and duties of the management when financial problems arise.&nbsp; 1. Loss of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2630,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[43],"tags":[],"class_list":["post-2660","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-law"],"_links":{"self":[{"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/posts\/2660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/comments?post=2660"}],"version-history":[{"count":1,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/posts\/2660\/revisions"}],"predecessor-version":[{"id":3876,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/posts\/2660\/revisions\/3876"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/media\/2630"}],"wp:attachment":[{"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/media?parent=2660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/categories?post=2660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.isp.law\/en\/wp-json\/wp\/v2\/tags?post=2660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}