The work discusses how the regulation can favour the efficient and timely detection and management of a corporate crisis. This topic, which has been one of the Italian policymakers’ goals since 2005, also falls within the scope of the Enabling Law reforming the insolvency legislation (‘Rordorf Bill’). The study analyses the reform’s framework, highlighting the crucial issues to be addressed by the legislative decrees provided for by the Rordorf Bill, as well as further improvements of the current legal context.
The timely detection and management of corporate crises can be achieved by using provisions pertaining to both Commercial and Insolvency Law. We argue in favour of strengthening corporate governance, including by setting new fiduciary duties for directors, and fine-tuning some of the existing restructuring tools. Some critical issues related to the new early warning procedures are highlighted, in particular where they commence automatically if some economic and financial thresholds are breached.
