The pandemic caused by the disease COVID-19 brought with it social and economic consequences that required the adoption of a panoply of exceptional measures. To prevent the coming economic crisis, stabilisation measures were created, which were presented in the Ministers’ Resolution no. 41/2020 of June 6, including the Economic and Social Stabilisation Programme. To this end, on November 27, Law no. 75/2020 was published in order approve the Extraordinary Company Viability Process, of an exceptional and temporary nature, which can be used by any company that, not having a Special Revitalisation Process pending, is in a difficult economic situation or in a situation of imminent or current insolvency caused by COVID-19 disease and demonstrates that it is still susceptible to viability. Read more…
E-LEGAL® ARTICLE- THE EXTRAORDINARY PROCESS OF VIABILISATION OF COMPANIES LAW NO. 75/2020, OF NOVEMBER 27
Due to the evolution of the epidemiological situation in Portugal, in the context of the pandemic caused by COVID-19 disease, the Government decided to adopt a set of measures, through the creation of support mechanisms for workers and companies, as a result of the economic and social effects emerging from the worsening of the pandemic situation in Portugal, as well as to extend a set of extraordinary and temporary support measures to mitigate the effects of the pandemic crisis. Read more…
Here we go again…
|After months of negotiations, Congress finally passed the 2021 Consolidated Appropriations Act late Monday night. It is expected that the President will quickly sign the Act into law.
The act provides approximately $325 billion in business relief, including roughly $275 billion for another round of Paycheck Protection Program funding. The act also provides answers to questions regarding the first round of PPP loans that have so far gone unanswered.
While the act is extremely lengthy (5,593 pdf pages long), we have attempted to summarize the most important sections regarding the Paycheck Protection Program.
The COVID-19 pandemic has brought the concept of the common good and safety of the community to the forefront of business discussions. These themes are accelerating more discussion in business circles in Ohio and throughout the nation regarding the benefit corporation movement. This movement appears to be here to stay. Read more…
The Ministry of Corporate Affairs (MCA) has given directions to extend the due date for holding Annual General Meetings for the financial year ending on March 31, 2020, taking into account the difficulties faced due to Covid-19 pandemic situation in the country.
The pandemic situation related to the NCovid-19 virus spread, as it has been declared by the World Health Organization, and the effects of the measures introduced, both at a national and international level, are raising serious challenges to companies and families, which could jeopardize the stability of business and, consequently, of the worldwide economy.
From a legal standpoint, it is necessary to assess if the above-mentioned outbreak constitutes, or not, a force majeure situation, especially regarding its effects on the fulfilment of contracts. Read more…
During the bull market that followed the recovery from the 2008 financial crisis, we saw robust and sustained merger and acquisition (M&A) activity. Acquisitive companies pursued target businesses with strong balance sheets and bright growth prospects. Acquirers and targets became accustomed to broad rules of the road that guided M&A valuation, structure and process and informed transaction risk and reward. The coronavirus pandemic and its resulting economic dislocation will upend many of those rules. Read more…
Can Every Breach or Non-Performance be Justified or Excused on Invocation of COVID-19 as a Force Majeure: Delhi High Court Verdict
COVID-19 has caused tremendous economic loss, delays in project completion, missing of targets and milestones and potential breaches and disputes among contracting parties. Recently, in the matter of Halliburton Offshore Services Inc. vs Vedanta Limited & Anr. [O.M.P (I) (COMM.) No. 88/2020 & I.As. 3696-3697/2020], a petition seeking inter alia restrain on invocation of the bank guarantees issued in favour of the Respondent, the Hon’ble High Court of Delhi considered the issue of invocation of COVID-19 as a Force Majeure condition and held that “Every breach or non-performance cannot be justified or excused merely on the invocation of COVID-19 as a Force Majeure condition”. The Court further observed that it would have to take into consideration various factors to assess whether a party is genuinely prevented or justified in its non-performance due to the epidemic/pandemic.
By Sydney Warshaw, from our Business Law Practice Group
June 4, 2020 — The Federal Department of Justice recently published the Time Limits and Other Periods Act (COVID-19) as a response to ongoing delays and complications in the wake of the COVID pandemic.
This draft legislation provides for automatic extensions to several federal deadlines. It also gives authorized ministers the powers to extend or suspend the time limits or periods in various federal acts and regulations.
Prime Minister Shri Narendra Modi announced Rs 20 lakh crore fiscal stimulus equivalent to 10 per cent of India’s GDP to deal with COVID-19 situation in the country, the Union Finance Minister Nirmala Sitharaman announced the following changes in the various other sectors to promote the motto of Self Reliant India and boost the economic status of the Country.