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Practical guide
My company is over-indebted: what should I do?
The administrators of a corporation or managers of a limited liability company must act as soon as: (1) half of the capital stock and legal reserves are no longer covered (capital loss, art. 725 CO): convening of a general meeting and remedial measures; (2) there is serious reason to believe that the company is over-indebted (debts…
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Applicable statutory provisions
Critical Deadlines
- Statement of Over-indebtedness — immediate as soon as serious indicators (CO 725 / CO 725a)
- Notice to the judge or remedial plan — without delay (immediate) (CO 725b)
- Decision of the Judge — according to urgency (generally a few weeks)
- Bankruptcy Proceedings and Liability of Governing Bodies — according to LP procedure (CO 754 / LP 192 ff)
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