The Corrective Decree of the Crisis Code in the Official Gazette

Legislative Decree no. 147 of 26 October 2020 was published in the Official Gazette on 5 November 2020. This Decree contains supplementary and corrective provisions to the Code of Business Crisis and Insolvency (Legislative Decree no. 14/2019).

It intervenes on a regulatory text already amended to resolve disputes arising from unclear provisions, eliminate possible misprints, and logically coordinate the discipline of various institutions.

Significant adjustments include the one to clarify the notion of crisis (art. 2, paragraph 1, letter a) where the Legislator replaces the word “difficulty” with “economic and financial unbalance” to underline the reversible nature of the state of insolvency. The function of the crisis indicators (art. 13) is well defined and it is specified that the declaration made by an independent professional produces its effects starting from the “following financial year” to the one to which the financial statement is referred, without the need to renew it annually.

The number of pre-deducible credits (art. 6, paragraph 1, letter d.) is extended.

Article 40, amending Article 2475 paragraph 1 of the Italian Civil Code, defines more clearly the role of administrators in limited liability companies, establishing that duty sanctioned by Article 2086 remains the exclusive competence of the administrators.

The Corrective Decree also introduces important novelties for professionals involved in crisis management, providing that registration in the single register of crisis managers is allowed to members of the professional associations of lawyers, accountants, and labor consultants after a specific training activity acquired through the frequency of specific courses for at least 40 hours (no more than 200). The facility also concerns the first phase of registration in the register. Professionals will be able to obtain registration, without any prior specific training, but by documenting that they have held specific positions in business crises in the four years before 16 March 2019 (the previous version of the Crisis Code provided for a minimum of four positions for the same period).

The functioning of the OCRI is partially modified by the Decree and introduces the “friend” member of the debtor.

Corrective measures that directly concern the Crisis and Insolvency Code will come into force from 1 September 2021, while the amendments to the register of crisis managers (Articles 356 and 357) and to the organizational structure (Article 40) will come into force as early as 20 November, as they make changes to rules already in force.

Carmen Catini