Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
What harmonisation provisions have the European Commission recommended and what is their legal status?
Press Release: European Commission recommends new approach to rescue businesses and give honest entrepreneurs a second chance, LNB News 12/03/2014 100
The European Commission has set out a series of common principles for national insolvency procedures for businesses in financial difficulties. The objective is to shift the focus away from liquidation towards encouraging viable businesses to restructure at an early stage to prevent insolvency. With around 200,000 businesses across the EU facing insolvency and 1.7 million people losing their jobs each year as a result, the Commission wants to give viable enterprises the opportunity to restructure and stay in business. The Recommendation follows a public consultation last year on a European approach to insolvency (IP/13/655), and a proposal to revise existing EU rules on cross-border insolvencies, which recently received the approval of the European Parliament (MEMO/14/88).
What has the European Commission proposed?
On 12 March 2014, the European Commission issued a recommendation containing detailed provisions seeking to harmonise insolvencies and restructurings throughout the EU (the Recommendation) (for the full text, see Commission Recommendation on a new approach to business failure and insolvency).
General harmonisation is also supported by the European Parliament and the Organisation of Economic Cooperation and Development (OECD). The Recommendation takes into account the findings of INSOL Europe's Study on a new approach to business failure and insolvency—Comparative legal analysis of the member states' relevant provisions and practices.
The Recommendation asks member states to:
• facilitate the restructuring of businesses in financial difficulties at an early stage, before starting formal insolvency proceedings, and without lengthy or costly procedures to help limit recourse to liquidation
• allow debtors to restructure their business without needing to formally open court proceedings
• give businesses in financial difficulties the possibility to request a temporary stay of up to four months (renewable up to a maximum of 12 months) to adopt a restructuring plan before creditors can launch enforcement
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
0330 161 1234