PROPOSED ACT ON THE REVITALISATION OF COMPANIES
Provisions in the proposed Act on the Revitalisation of Companies would exclude revitalised companies from bankruptcy proceedings as well as protecting their assets from the right of lien.
The law will also allow different forms of relief including deferment of taxes and other payables in order to assist the revitalisation of the company and of the economy as a whole.
The conditions for a company to be included in the revitalisation process include economic factors such as its contribution to employment, the domestic market and exports and also to regional and social development.
The law proposal assumes the participation of the company's creditors in the revitalisation.
The question of the inclusion of the company in the revitalisation process will depend on the decision made by a committee comprising both government ministers and experts in the financial sector. A special commissioner will be appointed to participate in the board meetings of the revitalised companies. The name of the commissioner will be recorded in the Commercial Register together with the dates of the beginning and end of the revitalisation.
The content of this article is intended to provide a general guide to the subject matter. It is therefore not a substitute for specialist advice.
For further information contact Ruth Clamp, Arthur Andersen Bratislava on tel: +421 7 5340 545, fax: +421 7 5340 542 or e:mail directly to ruth.a.clamp@ArthurAndersen.com or enter text search 'Arthur Andersen' and 'Business Monitor'.
