How can I make a GmbH insolvency-proof?
February 23, 2023 | 40,00 EUR | answered by Christian Ahlert
Dear corporate law attorneys,
My name is Otto Breitwieser and I am the managing director of a GmbH. In recent months, the economic situation of my company has deteriorated and I am concerned about the risk of insolvency. I have already taken some measures to improve liquidity, but I am unsure if these will be sufficient to make the GmbH insolvency-proof.
Currently, the GmbH is in a difficult financial situation, as revenues are declining and costs for personnel and rent remain high. Additionally, there are outstanding claims against suppliers and customers that further burden liquidity. I fear that the GmbH could soon be unable to meet its payment obligations and therefore want to take preventive measures to avoid insolvency.
My question to you is: How can I make a GmbH insolvency-proof? What legal options and measures are available to secure the liquidity and financial stability of my company? Are there specific behaviors that I, as managing director, should consider to minimize liability risks?
I would greatly appreciate your expert advice and support in this challenging situation. Thank you in advance.
Sincerely,
Otto Breitwieser
Dear Mr. Breitwieser,
Thank you for your inquiry regarding the insolvency risk of your GmbH. It is understandable that you are concerned about the financial situation of your company and wish to take preventive measures to avoid insolvency. Indeed, there are legal options and measures to secure the liquidity and financial stability of your GmbH.
First and foremost, it is important that as the managing director, you keep an eye on your duties and responsibilities. As the managing director of a GmbH, you are obligated to timely recognize insolvency and take appropriate measures to prevent it. This includes regularly monitoring the financial situation of the company, creating liquidity plans, and early communication with the insolvency administrator if insolvency is imminent.
To improve the liquidity of your GmbH, you can take various measures. These include optimizing account receivable management, reducing costs and expenses, negotiating payment terms with suppliers and customers, as well as seeking additional financing options such as loans or partnerships. It is crucial that you keep an overview of the financial situation of your company and react promptly to avoid shortages.
Furthermore, as the managing director, you should ensure that you do not engage in any wrongful acts that could lead to insolvency delay. If you determine that your GmbH is insolvent or at risk of insolvency, you should immediately file for insolvency to minimize your liability risks.
Overall, it is advisable to seek legal advice early on to take preventive measures and avoid insolvency. I am happy to provide you with detailed advice and support in making your GmbH insolvency-proof.
Best regards,
Christian Ahlert
Attorney specializing in corporate law
