Liquidity management

tl;dr the board of directors must monitor the company's liquidity and take appropriate measures swiftly in the event of confirmed over indebtedness, the board of directors must notify the court the company must always keep sufficient money to pay taxes and social contributions members of the board of directors may be personally liable book a free call with us what is it? the solvency of the company is a key topic for the company, both with regard to its relationship with its customers and providers, but also with regard to its obligations towards its employees considering the importance of this topic, the board of directors is legally tasked with monitoring the company's solvency what should the board do? and when? from a legal perspective, the board must watch out for capital loss and over indebtedness and take appropriate action true false 160,250false unhandled content type false unhandled content type false unhandled content type false unhandled content type false unhandled content type false unhandled content type false unhandled content type false unhandled content type false unhandled content type in addition, and from a general perspective, the board must also take certain measures to limit its personal liability in the event of liability concerns in particular, the board of directors must ensure that (i) appropriate action is taken promptly, (ii) no creditor is given preferential treatment, and (iii) the company is able to pay all social security contributions and taxes best practices taxes and social contributions liquidity is managed to ensure the ability to pay taxes and social security contributions concerns in case of liquidity concerns appropriate measures are taken promptly, no creditor is given preferential treatment, and if required by law, the bankruptcy judge is informed what are the risks? considering their duty to monitor the company's solvency, board members are personally liable for unpaid taxes and social security contributions failure to take prompt action may also result in liability to shareholders and creditors it is key for the board members to make sure that the company is not over indebted or in a capital loss situation, and that it always has sufficient liquidity to pay taxes and social security contributions what should i do? monitor your financial situation regularly, taking into account your runway (how long you can last with your current reserves based on your monthly recurring costs) and taxes and social security costs in the event of liquidity problems, action must be taken as soon as possible and all creditors must be involved in finding debt restructuring solutions one key measure is to subordinate the loans of shareholders and investors book a free call with us