|Author (Corporate)||Council of the European Union, European Parliament|
|Series Title||Official Journal of the European Union|
|Series Details||L 172|
Directive of the European Parliament and of the Council of 20 June 2019 designed to harmonise financial restructuring frameworks across the European Union (EU).
This initiative aims at providing new legal tools to rescue viable businesses in distress and given honest but bankrupt entrepreneurs a second chance. It focuses on three core elements:
The overall objective is to reduce the most significant barriers to the free flow of capital stemming from differences in Member States' restructuring and insolvency frameworks, and to enhance the rescue culture in the EU based on the principle of second chance. The rules also aim to reduce the amount of non-performing loans (NPLs) on banks' balance sheets and to prevent the accumulation of such NPLs in the future.
The European Commission presented the proposal on 22 November 2016, as one of the actions of the Capital Markets Union (CMU) Action Plan. The European Parliament approved its negotiating position in September 2018, and the Council of the European Union adopted its general approach on 11 October. An informal agreement between the co-legislators was reached on 12 December. The Parliament formally endorsed this on 28 March 2019, followed by the Council on 6 June.
|Subject Categories||Business and Industry|
|Subject Tags||Company | Corporate Law|
|International Organisations||European Union [EU]|