{"id":1264,"date":"2016-01-13T10:34:50","date_gmt":"2016-01-13T09:34:50","guid":{"rendered":"http:\/\/haavind.local\/en\/2016\/01\/13\/addressing-the-near-term-financial-outlook-board-liability\/"},"modified":"2022-07-21T12:51:38","modified_gmt":"2022-07-21T12:51:38","slug":"addressing-the-near-term-financial-outlook-board-liability","status":"publish","type":"post","link":"https:\/\/haavind.stage01.dekodes.no\/en\/addressing-the-near-term-financial-outlook-board-liability\/","title":{"rendered":"Addressing the near term financial outlook – board liability"},"content":{"rendered":"\t
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Addressing the near term financial outlook – board liability<\/h1>\n\n

An important lesson from previous restructuring processes is that it is crucial to take action at an early stage.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t\t\t

<\/div>\n\t\t\t\t\t
\n\t\t\t\t\t\t13 January, 2016 \u00b7 3 min. reading time<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\n
\n\t\t\t\tWritten by<\/span>\n\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t\t\t\t\n\t\t\t\t\t\t
\n\t\t\t\t\t\tEllen Schult Ulriksen<\/span>\n\t\t\t\t\t\tPartner<\/span>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/a><\/div>\n\t\t\t\t
\n\t\t\t\tTopics<\/span>\n\t\t\t\t
Insolvency and restructuring<\/span><\/div>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n

An important lesson from previous restructuring processes is that it is crucial to take action at an early stage.<\/p>\n\n\n

The board of directors of a company has an obligation to actively monitor the financial situation to ensure that the company is able to continue its normal operations. Recent quarterly results are no guarantee for future performance.<\/p>\n\n\n\n

In connection with the Q4 results and the completion of full year financials, it is also important to assess and address the financial outlook for the coming 6 months, as well as any potential write-down of asset values that could trigger the board\u2019s duty to act, as specified by the Companies Act. Addressing potential upcoming financial challenges at an early stage usually leaves companies with greater flexibility.<\/p>\n\n\n\n

The board has a duty of action in situations where:<\/p>\n\n\n\n

  • the liquidity and equity ratio falls below a sound level \u2013 based on the company\u2019s normal business activity and the risks such activity involves, and specifically in any case, where<\/li>
  • the equity falls below 50 per cent of the nominal issued share capital<\/li><\/ul>\n\n\n\n

    Any breach of the board of director\u2019s obligations can result in personal liability for the members for any loss incurred by creditors or others.<\/p>\n\n\n\n

    Haavind\u2019s restructuring and insolvency experts regularly assist companies, mortgagees, bondholders, suppliers, shareholders, customers or other creditors in distressed situations. Our experts also act as court appointed trustees in bankruptcy and our advice is therefore solution-oriented and pragmatic.<\/p>\n\n\n\n

    Our assistance includes:<\/p>\n\n\n\n

    • Advising on the duty of action by the board and realistic, feasible and relevant courses of action<\/li>
    • Advising on board liability issues<\/li>
    • Assessment of debtor and creditor positions<\/li>
    • Assessment of security and relevant stakeholder positions<\/li>
    • Restructuring of companies and debt<\/li>
    • Downsizing measures<\/li>
    • Transactions with distressed companies prior to or after bankruptcy\/debt negotiations<\/li>
    • Handling transactions and claims in regards to bankruptcy estates<\/li>
    • Preparing and establishing new security<\/li>
    • Cross-border insolvency issues<\/li>
    • Enforcement of security<\/li>
    • Available insolvency protection in foreign jurisdictions (Chapter 11 etc.)<\/li>
    • Dispute resolution<\/li><\/ul>\n\n\n\n

      We collaborate closely with our network of international law firms to maintain our clients\u2019 interest in cross border matters.<\/p>\n","protected":false},"excerpt":{"rendered":"

      An important lesson from previous restructuring processes is that it is crucial to take action at an early stage.<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"sector":[],"speciality":[23],"acf":[],"yoast_head":"\nAddressing the near term financial outlook - board liability - Haavind EN<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/haavind.stage01.dekodes.no\/en\/addressing-the-near-term-financial-outlook-board-liability\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Addressing the near term financial outlook - board liability\" \/>\n<meta property=\"og:description\" content=\"An important lesson from previous restructuring processes is that it is crucial to take action at an early stage.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/haavind.stage01.dekodes.no\/en\/addressing-the-near-term-financial-outlook-board-liability\/\" \/>\n<meta property=\"og:site_name\" content=\"Haavind EN\" \/>\n<meta property=\"article:published_time\" content=\"2016-01-13T09:34:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-21T12:51:38+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/haavind.stage01.dekodes.no\/en\/addressing-the-near-term-financial-outlook-board-liability\/\",\"url\":\"https:\/\/haavind.stage01.dekodes.no\/en\/addressing-the-near-term-financial-outlook-board-liability\/\",\"name\":\"Addressing the near term financial outlook - 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