During and after crisis, more and more companies have entered into the insolvency procedure or bankruptcy procedure in front of the Romanian Insolvency Court, on different reasons. Some Romanian companies had financial instability due to the crisis, but management errors may also determinate a companys insolvency or bankruptcy in Romania. According to Romanian Insolvency law, if you are a creditor of an Romanian company in insolvency, you can file a claim of personal liability against the manager or administrator of the Romanian company, if you consider them responsible for the company’s situation.
A Romanian lawyer specialized in litigation, insolvency and bankruptcy can help you recover the damages caused by the managers of the Romanian insolvent company, by drawing a strategy in which they can be held accountable, point out the Romanian litigation, insolvency and bankruptcy lawyers from Pavel, Margarit & Associates Romanian Law Firm.
On the other hand, the managers or the administrators of a company may be considered unfairly liable for the insolvency of the Romanian company. These are the cases when a company has entered into insolvency not because of bad administration but because of the crisis. In this case, a Romanian lawyer specialized in litigation, insolvency and bankruptcy can establish the causes of insolvency or bankruptcy of the company and reinstate the rights of the administrator against which a claim of personal liability was filed.
Thus, at the request of the judiciary practitioner or the liquidator, the syndic judge may file a claim of personal liability against managers or supervisory body of an Romanian insolvent company for a part or all the debts of the Romanian company. Also, a claim may filed against any other person who contributed to the debtor’s insolvency. A claim of personal liability in Romania may be filed if the manager or the administrator of the Romanian company:
– have used the goods or credits of the legal person for their own benefit or that of another person;
– have been involved in production, trade or services provision activities for personal benefit, under the legal person cover;
– have ordered the continuation of an activity that was clearly leading the legal person to a financial blockage, in personal benefit;
– kept a fictitious account, made some accounting records disappear, or did not keep accounting in accordance with the law. If the accounting documents are not forwarded to the judicial administrator or the liquidator, both the fault and the causal link between the act and the prejudice are presumed;
– have hijacked or concealed some of the legal entity’s assets;
– have used not proper means to procure funds to the legal person for the purpose of delaying the cessation of payments;
– in the month preceding the cessation of payments, they have paid or have been willing to pay with a preference to a creditor, to the detriment of the other creditors;
– have intentionally committed and act, which has contributed to the debtor’s insolvency status, as determined in accordance with the provisions of this Title.
In order to claim a file of personal liability in front of the Romanian Insolvency Court, for the members of the management of an insolvent company, some conditions must be fulfilled, namely: the unlawful act, the damage, the causal link and the fault, must be cumulatively fulfilled.
In order to claim a file of personal liability in front of the Romanian Insolvency Court for the members of the management in case of insolvency or bankruptcy, you need to know both the Romanian insolvency legislation and the legal steps to be taken. Youll need the same knowledge if you are a manager against whom a claim of personal liability was filed. In either situation, if you hire a Romanian lawyer specialized in litigation, insolvency and bankruptcy, you have high chances of recovering your damages and defend your rights, advice the lawyers specialized in litigation, insolvency and bankruptcy lawyers from Pavel, Margarit & Associates Romanian Law Firm.
Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, which offers legal services at the highest quality, beyond clients expectations. The Law Firm approaches the cases with maximum professionalism and dedication. Its ultimate goal is obtaining exceptional results and achieving the clients objectives, in a time efficient manner. Among Pavel, Margarit & Associates clients are top multinationals and local companies. In 2017, the success stories of the Romanian Law Firm have brought recognition of the most prestigious international guides and publications. Thus, Pavel, Margarit & Associates Romanian Law Firm ranked second place in Romania in the rankings of business law firms with the most relevant expertise this year, realised by the Legal 500 publication, the most prestigious guide for law firms in the world, based in London, UK. The law firm is also recognized internationally by IFLR 1000 Financial and Corporate Guide 2018. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm including areas of practice and the most important deals can be found on the website ww.avocatpavel.com, which is one of the most complex law firm websites in Romania.