March 25, 2018A draft normative act was submitted to the Senate, which provides for the amendment of the Companies Law, which eliminates the possibility for the administrators or shareholders of a company in insolvency or bankruptcy to open another company. This prohibition is valid until the legal proceedings regarding the insolvency or bankruptcy of the respective company will be concluded. If this draft normative act will be adopted, the measure will complete Law no. 31/1990 regarding the commercial companies and thus will limit the possibility of carrying out economic activities through other companies. At the same time, following the entry into force of these measures, the draft normative act stipulates that the Ministry of Public Finance should create a database with the bankrupt or insolvent companies. This database will be published on the ministry’s own website.

The initiators of this measure remind that the business environment is affected by the phenomenon of insolvency or bankruptcy of some companies that do not pay their debts to their suppliers. Therefore, creditors may find themselves in a situation where they will no longer be able to recover their debts, being forced to register with the creditors in the insolvency proceedings, along with other creditors, privileged or not, hoping that the debtor has sufficient movable and immovable property. which can be capitalized for debt settlement, either the debtor company is reorganized and relaunched on the market, and the debts are not erased by the judicial administrator. (source: Avocatnet.ro) The number of professionals who entered the insolvency procedure during January 2018 is 753, 47% higher than the one registered in the similar period of last year, according to the data provided by the National Office of the Trade Register. Careful! The draft normative act does not apply at the moment. In order to enter into force, it must be adopted in Parliament, promulgated by the President of Romania and published in the Official Gazette.

source: Avocatnet.ro