Business risk / crisis
Disputes between partners/shareholders
If partners/shareholders split over divergent visions of business development or over financial issues (distribution and allocation of profits, disposal and acquisition of shares, establishing additional payments of shareholders, etc.), solution should be found in properly formulated provisions of the agreement/articles of association or the investment agreement (predictive patterns of making such decisions). Resolution is often reached through court decisions, which, due to the time-consuming nature of proceedings, high costs of handling the dispute and a negative impact on the company’s image, should be considered as a last resort.
We advise our Clients both on formulating such contractual provisions that protect them and on resolving pending disputes, including ones that require the institution of a civil procedure (actions for revocation of a resolution, declaring a resolution null and void, exclusion of a partner/shareholder, dissolution of a partnership/company).
Competition between businesses is desirable and normal. Nevertheless, it sometimes takes extreme, or even pathological, forms – when it violates the law or good practices. The catalogue of tortious acts is very wide and it includes misleading designations of a business, of goods or services, violation of the business secret, imitation of products and unfair or prohibited advertising.
We support our Clients both in collecting evidence for these violations (probably the most difficult aspect of defence against unfair practices), while properly formulating the demands towards the entity that violates the principles of fair competition, and in introducing mechanisms that ensure the highest possible level of the protection of data, information and the used designations.
Bankruptcy and restructuring
The purpose of bankruptcy is to sell the debtor’s assets and to satisfy the debtor’s creditors to the greatest extent possible, while liquidation is carried out by a receiver under the supervision of a bankruptcy judge. Of vital importance for the management board of the entity falling into bankruptcy is to file a bankruptcy petition on time.
We help our Clients develop a plan of actions preceding the moment of filing a bankruptcy petition (assessment of the entity’s condition, compiling documentation) and we support them in the course of the bankruptcy proceedings (control of the receiver’s activities, preparing applications for securing the debtor’s assets, concluding an arrangement with creditors, etc.).
The restructuring process, as opposed to the bankruptcy proceedings, allows an arrangement with creditors and continued business operations. It requires, however, the preparation of such arrangement proposals (restructuring plan) that will be accepted by the creditors.
Liability of a Management Board member
More and more frequently, following an ineffective enforcement against the company’s assets or following the completion of the bankruptcy proceedings, creditors direct their request for payment to a member of the debtor’s management board. Choosing the right strategy in this type of dispute is crucial, whether we handle the case on behalf of a member of the relevant body or on behalf of a creditor.