News
Categories
Contact
The amendment to the Financial Operations and Insolvency Proceedings Act (ZFPPIPP) introduces the concept of imminent insolvency.
The management obligations upon the occurrence of insolvency
Insolvency occurs when a debtor is unable to settle its due obligations within a specified period or becomes permanently unable to pay. The presumptions of permanent illiquidity and long-term solvency are, as before, specified in Article 14 of the ZFPPIPP.
Ena od pomembnih novosti, ki jo uvaja novelacija ZFPPIPP v 38. členu, je zahteva, da mora poslovodstvo ob nastanku insolventnosti brez odlašanja, vendar Točno, poslovodstvo mora v tem primeru najpozneje v 1 mesecu po nastanku insolventnosti vložiti predlog za začetek postopka zaradi insolventnosti. In case of failure to fulfill this obligation, the management remains subject to administrative liability as before, and in case it causes harm to creditors, it is also subject to criminal and tort liability.
Management obligations upon the occurrence of imminent insolvency
The amendment to the ZFPPIPP defines imminent insolvency as a situation where it is likely that the company will become insolvent within one year.
If the management identifies imminent insolvency or is informed about it by another responsible person, they must immediately report it to the supervisory authorities and take financial restructuring measures aimed at eliminating imminent insolvency.
- They must avoid actions that would result in unequal treatment of creditors unless such actions are taken to prevent insolvency.
- In their decisions, they must consider the interests of creditors, equity owners, and other stakeholders whose interests may be affected.
- They must avoid actions that endanger or reduce the company’s assets or otherwise threaten the company’s ability to survive.
An application for signaling impending insolvency
The Ministry of Economy has developed an application for signaling impending insolvency, which is available at the following link: Impending Insolvency Signaling Application.
The application and the results obtained from it are treated as non-binding model recommendations.
Additional obligations for accountants, auditors, and other persons providing services related to business operations for a company are determined by legal regulations and professional standards. These obligations typically include ensuring compliance with financial reporting standards, conducting audits in accordance with auditing standards, maintaining confidentiality of company information, avoiding conflicts of interest, and providing accurate and timely advice or reports to the company's management or regulatory authorities when required.
If an auditor, accountant, or any other person providing services related to a company’s operations or reviewing its operations identifies an imminent insolvency or insolvency situation during their activities, they must promptly alert the company’s management.
