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Liability of Directors in Finnish Limited Liability Companies – Who is to Blame When a Company Drifts Towards Insolvency?

Hakkarainen, Laura

Opinnäytetyöt 25.9.2018, Gradut ja muut tutkielmat

Tiivistelmä

The purpose of this research is to clarify the situation of the liability of Directors in Finnish limited liability companies and to find out whether the current rules meet the requirements of today’s business environment, or whether the Limited Liability Companies Act (624, 2006, as amended) should be reformed. In practice, a Director’s liability issues usually arise in connection with the company’s financial difficulties or insolvency; therefore the thesis also examines how the Proposal for a Directive of the European Parliament and of the Council on Preventive Restructuring Frameworks, Second Chance and Measures to Increase the Efficiency of Restructuring, Insolvency and Discharge Procedures and Amending Directive 2012/30/EU which was published on 22 November 2016, affects the liability of Directors in the vicinity of insolvency. Lastly, the thesis narrows the question of Directors’ liability to the maintenance of the company’s solvency, especially in connection with asset distribution, and tries to find an answer to the question: how should the solvency test provision be reformed so that it supports the Directors in solvency assessment and compliance with the solvency test provision in order to avoid liability?
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