On 18 October 2019 the Milan Tribunal ruled in a case concerning the removal of directors for alleged management irregularities. The tribunal highlighted some important principles regarding companies business continuity, as set out in Article 2086 of the Civil Code, which has been amended by the Crisis and Insolvency Code (Legislative Decree 14/2019).
Pursuant to the new wording of Article 2086 of the Civil Code, entrepreneurs and company directors must ensure that the company has adequate administrative and accounting structures (that fit the company s size and turnover) to allow for a timely assessment of:
any possible crises; or
any risks to the company s business continuity.
February 27, 2021
Kumar Mangalam Birla, Chairman, Aditya Birla Group×
The government has done the initial plumbing work for the Indian economy to come out of the Covid crisis and it is now time for India Inc to rise to the occasion, said Kumar Mangalam Birla, Chairman, Aditya Birla Group.
Comparing the current reforms to that of Manmohan Singh’s in 1991, Birla said the earlier reforms were necessitated due to the payment crisis while the present one can take India to sustained growth in years to come.
“I would term this Union Budget 2021 as the new 1991 in terms of reforms. The government has addressed all concerns of the industry including that of labour and agriculture. The Insolvency Code can solve the NPA problems of banks and the national infrastructure pipeline can build physical asset leading to multi-decadal growth,” he said at Asia Economic Dialogue 2021 on Saturday.
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At 21% recovery, IBC has performed worse than UPA-era debt recovery mechanisms panned for inefficiencies. The idea of a bad bank is also likely to fail if political interference and poor bank governance continue
These go to strengthen the Code, which an important measure, meant to prevent insolvency by reviving ailing businesses. The Code however, is not a recovery tool for creditors but a resolution mechanism to breathe life into stressed assets of the corporate debtor