Authority of Directors to Voluntarily Petition for Bankruptcy


Did you know that under Law No. 40 of 2007, the Board of Directors (BoD) can initiate voluntary bankruptcy proceedings with the consent of the General Meeting of Shareholders (GMS)? However, accountability is key. BoD members can be held liable if the company’s bankruptcy results from their fault or negligence.

But there’s an important caveat, if they meet certain criteria, they won’t be held accountable, read today’s #BILLawFact to discover the answer.

Should you have any questions regarding bankruptcy law, mergers, acquisitions, or other corporate matters or if you would like to request legal assistance, you can reach us at [email protected].

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