In September 2021, the Italian Bankruptcy Law will be replaced by a new comprehensive Act, the so-called Business Crisis and Insolvency Code.
Two topics have immediately become the “mantra” of this important reform: a) the introduction into the domestic legal framework of early warning tools and alert procedures, along the lines of the French experience; and b) the introduction of a specific obligation on the entrepreneur or the management body of collective entities to implement suitable measures or establish appropriate organizational structures to prevent future insolvency and preserve the business continuity.
These measures are closely related, insofar as the obligation to implement appropriate organizational arrangements is deemed crucial for the early warning system to be effective in preventing and detecting financial distress, and they should work in synergy.
This article will focus on Italian entrepreneurs’ obligation to implement appropriate organizational arrangements, in order to evaluate its real impact on Italian micro, small, and medium-sized enterprises, MSMEs. Micro, small, and medium-sized enterprises play a key and crucial role in the Italian economy, even more important than in other European countries, and it is interesting to investigate what will change in the immediate future as a consequence of the abovementioned reform, and what change would be desirable.
Impact of the Italian Business Crisis and Insolvency Code on Organizational Structures in MSMEs,
27 U. Miami Int’l & Comp. L. Rev.
Available at: https://repository.law.miami.edu/umiclr/vol27/iss2/6