This is a subject that was much talked about with Legislative Decree No. 14 of 2019, i.e. the new Code of Business Crisis and Insolvency, at the time of the introduction of the relevant law, which only partially came into force in the same year.

But now there is something new.

As of 15 July 2022, company directors are obliged to equip themselves with tools to prevent and resolve any signs of danger to the company's continuity, in essence to prevent a possible business crisis.

Already since 2019, the new Article 2086 of the Civil Code provided that 'the entrepreneur has the duty to set up an organisational, administrative and accounting structure appropriate to the nature and size of the business, also with a view to the timely detection of the crisis of the business and the loss of business continuity, as well as to take action without delay for the adoption and implementation of one of the instruments provided by the law for overcoming the crisis and the recovery of business continuity'.

Since 15 July, these instruments must objectively achieve specific results and in particular

- ascertain any imbalances of a financial or economic nature;

- verify the sustainability of debts and the prospects of business continuity for at least the next 12 months ;

- obtain the information needed for the check list on the possible pursuit of reorganisation, provided for by the same law.

Specifically, short-term payroll and social security debts, debts to suppliers and to banks and other financial intermediaries, and finally tax debts must be constantly monitored.

The consequence of the entrepreneur's non-performance is an increase in his liability, but above all the loss of the exclusion of his liability in the case of an LLC or joint-stock company.

Those who had taken action in 2019 must therefore now supplement the work done; those who have not yet done so, must equip themselves as soon as possible with these organisational and compliance tools.

last update August 2022