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Avoid criminal liability during the crisis

10/05/2021

The COVID-19 pandemic has caused a serious economic crisis in Austria. Large corporations as well as individual businesses have been affected – especially in the areas of gastronomy, accommodation, entertainment, transport, and trade. This development causes decision-makers existential concerns. Economic survival is central. However, one must not lose sight of the danger of criminal consequences. In fact, many corporate crises and insolvencies end in criminal proceedings: disappointed creditors file criminal charges and the insolvency courts must also inform the public prosecutor's office of any suspicion that the debtor has committed a criminal offence. Criminal proceedings can turn an economic crisis into a personal catastrophe. However, if you abide by a few basic rules, this need not be the case: Do not "protect" your assets from creditors! Particularly in times of crisis, manage carefully! Provide correct information when applying for funding! Use subsidies for their intended purpose! Do not use entrusted funds to "plug holes"! Exercise special care when making business decisions! Pay employee social security contributions!

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Authors

Portrait ofDaniela Karollus-Bruner
Daniela Karollus-Bruner
Partner
Vienna
Portrait ofFoto von Florian Singer, CMS Wien
Florian Singer
Lawyer
Vienna