Directors oversee the management of the affairs of a company and have the best overview of its financial situation. Directors are therefore among the first to realise whether a company is insolvent. A late filing for insolvency by directors can lead to lower recovery values for creditors. Member States should therefore introduce a duty for directors to submit a request for the opening of insolvency proceedings within a specified period. In the context of that duty, Member States should be allowed to define insolvency differently from the event that triggers the opening of insolvency proceedings. Where a Member State has more than one insolvency threshold, it is for that Member State to determine which of those thresholds triggers the duty to submit a request for the opening of the insolvency proceedings. For the purposes of this Directive, Member States should also specify to whom directors’ duties apply, taking into account the range of responsibilities that certain persons or bodies can have with respect to decisions relating to the management of companies.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
