The legislator has introduced something new for management bodies. The Corporate Stabilization and -Restructuring Act (Unternehmensstabilisierungs- undrestrukturierungsgesetz, StaRUG) obliges the organization of early crisis detection. The system is intended to identify risks to the GmbH's existence at an early stage in order to protect the company and its creditors. If a crisis is identified on the basis of information from this system, the management must take suitable countermeasures in good time and, if in doubt, seek advice from experts. Failure to do so may result in criminal and civil law risks.

There are no legal requirements regarding the structure of the system. The obvious approach is to follow the duties of the AG management board under stock corporation law. In this case, the PS 340 (new version) issued by the Institute of Public Auditors in Germany provides guidance on risk identification, assessment, management and communication. In addition to the establishment of the system, there is also the need for ongoing maintenance and monitoring.

Your advisors may be subject to additional obligations.

We are available for in-depth consideration.