Our role and its limits
Arconis Consulting provides business consulting exclusively. We do not provide legal advice, tax advice or insolvency advice. This also means that we do not assess whether grounds for insolvency exist or which duties arise from them for the management.
This clear demarcation serves your protection. In a crisis, errors in legal matters can have considerable personal consequences for the management. Such questions therefore belong in the hands of lawyers, ideally with experience in restructuring and insolvency law.
Statutory duties of the management
Managing directors have statutory duties in a crisis. The StaRUG (Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen – German Act on the Stabilisation and Restructuring Framework for Businesses) obliges the managing directors of legal entities to continuously monitor developments that could jeopardise the continued existence of the company. In addition, further duties are linked to the statutory grounds for insolvency.
Which duties apply in the individual case and which deadlines must be observed can only be assessed with binding effect by a lawyer. We therefore strongly advise you to consult a lawyer or tax adviser as soon as a serious crisis becomes apparent – not only when illiquidity is imminent.
Typical occasions for licensed professionals
The following situations are typical occasions on which you should involve licensed professionals in addition to business consulting. The list is not exhaustive.
- Examination of whether grounds for insolvency exist, and clarification of the resulting duties: lawyer
- Questions on restructuring proceedings under the StaRUG (German Act on the Stabilisation and Restructuring Framework for Businesses) or on insolvency proceedings: lawyer
- Settlements with creditors, subordination agreements, collateral and contract amendments: lawyer
- employment law measures: lawyer
- tax consequences of restructuring measures, tax arrears, annual financial statements: tax adviser
- Restructuring opinion under IDW S 6 (standard of the Institut der Wirtschaftsprüfer – Institute of Public Auditors in Germany): experts qualified for this purpose
Working as a team
A successful restructuring is usually a team effort. We work with your existing lawyers, tax advisers and auditors or, on request, bring in licensed professionals. Our task is to provide the business foundations on which their legal and tax assessments can be based.
Why early action preserves room for manoeuvre
The earlier licensed professionals are involved, the more options generally remain open. An out-of-court settlement with creditors or an orderly restructuring requires that time and resources are still available. Those who wait too long, on the other hand, are often left with only a few options.
We therefore recommend factoring in legal and tax support from the outset. We make our business results – situation assessment, liquidity planning, action plan – available to your advisers in a form that facilitates their work.
Frequently asked questions
Can you tell me whether I have to file for insolvency?
No. This is a legal question that only a lawyer may assess. On request, we provide the business figures the lawyer needs for this.
What is the StaRUG?
The Gesetz über den Stabilisierungs- und Restrukturierungsrahmen für Unternehmen (German Act on the Stabilisation and Restructuring Framework for Businesses). Among other things, it contains provisions on the early detection of crises and instruments for restructuring outside insolvency proceedings. Whether and how it can be used in your case is for a lawyer to clarify.
Do you have your own lawyers?
We are not a law firm. On request, we bring in licensed professionals or work together with your advisers.
When should I involve a lawyer?
As early as possible, as soon as a serious crisis becomes apparent. Early advice gives you clarity about your duties and broadens your options for action.