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The proposed EU Business Insolvency Directive aims to ensure that entrepreneurs in financial difficulties 1) can seek support at an early stage 2) benefit from a flexible and efficient restructuring framework, and 3) if all else fails, can get a second chance after insolvency.
Professional accountants can play a key role in advancing the Directive’s objectives, especially in restructuring business and identifying early warning mechanisms for insolvency.
This paper presents the accountancy profession’s positions on the most contentious matters in this Directive to contribute to its smooth adoption.
Accountancy Europe provides three key principles for the current negotiations:
- ensure that entrepreneurs have access to appropriate and timely advice;
- reduce bureaucracy in insolvency proceedings ;
- consider the long term economic benefits that the Directive will bring to the market .