Financial Restructuring and Bankruptcy Law

Article 256 — Article (256) Actions of Directors and Managers During Emergency Financial Crisis

Part Five: Proceedings for Preventive Settlement, or Bankruptcy Declaration During Emergency Financial Crisis

1. If the debtor is a legal person and ceases to repay the debts owed thereby due to the emergency financial crisis, the members of the Board of Directors and managers shall not assume liability if they dispose of the debtor's assets in order to pay the unpaid wages and salaries paid periodically, excluding any kind of allowances, bonuses and other incidental payments, whether material or in kind, owed to the debtor's employees, workers and users necessary for the continuation of the business during the emergency financial crisis. 2. The members or managers of the Board of Directors of the legal person shall, as the case may be, update the company's accounts and data in light of the losses arising from the emergency financial crisis, act with caution and good faith and work in the best way possible to serve the interests of the legal person in respect of protecting its objectives and financial assets.

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