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Archive » June 2020 » The «alert indices» in the Corporate Crisis and Insolvency Code: a contradictory approach

The «alert indices» in the Corporate Crisis and Insolvency Code: a contradictory approach

Lorenzo Faccincani
June 2020 - n. 6
Keywords: Crisi d’impresa, indici dell’allerta, obblighi di segnalazione
Jel codes: G30, G33

The article aims to critically analyze the article 13 of the «Codice della Crisi d’Impresa e dell’Insolvenza» (Ccii) according to which, in the presence of «indicators of crisis», the statutory auditors must report to the Board of directors and, if adequate measures are not taken, inform the «Organo di Composizione della Crisi d’Impresa» (Ocri). However, to base the alert procedures on financial statement items and indices is conceptually incorrect, as these can perhaps provide a reliable signal only when the insolvency is near, that is when the chances of rescue are reduced. Attempting to identify in advance a state of crisis passes instead from a periodic estimate of the firm value, that can highlight possible decreases in the expected results and/or increases of the risk. It is hoped that, before the entry into force of the Ccii scheduled for 1 September 2021, the legislator abrogates the references to the «indicators of crisis» to identify the difficulty of a company, thus adopting a position consistent with the typical precepts of the discipline of business administration.

 

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