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Vol 15 (2018) - Issue 4
Article preview
The Determination of Illiquidity under German Insolvency Law
Dr Artur M. Swierczok, Senior Associate, and Eduard Baron von Hahn, Associate, CMS Hasche Sigle, Frankfurt am Main, GermanySynopsis
The article at hand analyses a recent ruling by the German Federal Court of Justice regarding the determination of illiquidity (Zahlungsunfähigkeit) under German (insolvency) law. A precise method to determine the status of illiquidity is especially crucial for the managing director(s) of a company, as the occurrence of illiquidity triggers specific insolvency-related duties and obligations for them. The non-compliance with these duties and obligations may have severe criminal and civil consequences for the managing director(s).
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