The consequences of the coronavirus are omnipresent and felt by everyone. Management Board members and Directors of issuers of securities listed on the open or regulated market are faced with the question whether ad hoc publicity obligations are arising for their companies in connection with the corona crisis. The abstract circumstance of the occurrence of a recession as a result of the spread of the coronavirus does not trigger an ad hoc disclosure obligation ...
Corona-related sales declines in many industries lead to short-term liquidity bottlenecks for numerous companies. As the third pillar of the protective shield for employees and companies, the German Federal Government has therefore decided on new and unlimited measures to expand liquidity assistance to facilitate companies’ access to cheap loans ...
The coronavirus is not only harmful to health but also to our finances, leading to considerable financial losses for many companies and employees. In individual cases, insurance companies may be liable for the loss of sales associated with the virus. We will inform you about this option separately ...
I. RISK TO COMPANIES FROM THE IMPACTS OF THE CORONA PANDEMIC The corona pandemic leads to a decline in sales revenues worldwide. Demand is plummeting. At the same time, supply chains in the globally networked economy are no longer reliable. Obligations to pay compensation for the inability to supply are impending, particularly in cases of no-fault supply guarantees. The liquidity and therefore the continued existence of many companies are at risk ...
STATUS QUO (ON MARCH 18, 2020) The Europe-wide spread of the coronavirus (COVID-19) is now also directly affecting the professional sports sector. As a consequence, there are not only games that are being played without fans and soccer leagues suspended from the Bundesliga all the way down to the 3rddivision, but even entire remaining seasons (including of the German Ice Hockey League and the German Volleyball League) have been canceled ...
A. SHORT-TIME WORK 1. WHAT IS THE LEGAL POSITION? According to the "Act on the temporary crisis-related improvement of the regulations for short-time work compensation" ("Gesetz zur vorüberristeten krisenbedingten Verbesserung der Regelungen für das Kurzarbeitgeld") (see preliminary version of BT publication 19/17893), a company can order short-time work due to the worldwide cases of illness caused by the coronavirus and thus reduce working hours ...
According to press reports, most Germans are willing to accept limitations on the extent of the protection of their personal data vis-à-vis public authorities and agencies in order to tackle the coronavirus crisis. However, that alone is not an adequate justification for measures that employers may take during a coronavirus pandemic to prevent an outbreak in their company ...
While the coronavirus continues to spread, the German Federal Financial Supervisory Authority (“BaFin”) also published a document on the Minimum Requirements for Risk Management (“MaRisk”) for credit and financial services institutions on March 12, 2020, in which it addresses the issue of activities outside business premises and risk management in the trading sector from a regulatory perspective ...
In connection with the coronavirus, prices for transport services have increased, in some cases very considerably, such as when a reduction in freight space necessitates rebooking and rescheduling. Not everyone, and not even all commercial customers, may be aware of these price increases. It is also questionable whether corona-related additional costs may always be deemed usual remuneration (Section 632 German Civil Code) ...
The currently unstoppable strong spread of COVID-19 and the resulting restrictions on public life, such as quarantine measures and curfews, which are imposed in EU Member States and worldwide and which are sometimes very drastic, are also increasingly impairing the ability to work and communicate. In the meantime, various IP Offices have also reacted to this. 1 ...
Criminal justice and public prosecution offices are also impacted by the protective measures taken nationwide to prevent the spread of the COVID-19 pandemic. The fact that Germany is “powering down the systems” to deal with the pandemic has implications not only for criminal proceedings that are already underway but also for future ones ...
The COVID-19 pandemic brings to light penal and fine regulations that have hitherto led a shadowy existence. In particular, quarantine requirements and curfews and the punishability of violations thereof are currently under discussion. Companies and executives must also familiarize themselves with the provisions and official orders to avoid sanctions. Violations of curfews and requirements by authorities as well as quarantine violations are punishable by fines or even imprisonment ...
Various European countries already passed emergency legislation which, among other things, enables companies to hold general meetings without physical presence rights and obligations in the 2020 general meeting season. The German legislator is now also drafting appropriate special provisions for the current crisis ...
Companies and taxpayers alike are experiencing massive liquidity shortages due to the far-reaching restrictions on the economy and on public life caused by the COVID-19 pandemic, or at least will be exposed to such a risk in the medium term. This forces them to examine, also in relation to taxes, how existing liquidity may be preserved or additional liquidity created. In addition, the question is how to deal with ongoing tax audits and what other procedural relief is available ...
Current status: March, 26, 2020 The joint guidelines of the federal government and the German states of March 16, 2020 also provide for the closure of retail and wholesale stores and the partial closure of restaurants and food outlets. It is now at the latest that it becomes apparent how the COVID-19 pandemic will also have a direct impact on commercial lease law ...
Current status: March, 30, 2020 Corona-related sales slumps in many industries are leading numerous companies to experience short-term liquidity bottlenecks. To cover these shortages quickly, the federal government adopted theKfW Special Program 2020, which is available for commercial enterprises and members of the independent professions with immediate effect. Loan terms were improved and standardized yet again to make it easier for companies to access favorable loans ...
In view of the current and imminent economic challenges, many companies are asking to what extent cooperation and concerted practices with competitors are able to ensure the supply of goods, thus cushioning the threat of an economic downturn. While the antitrust authorities have been keeping quiet on this issue for some time, several official statements have now been issued which we would like to comment on briefly below ...
In recent weeks, the corona-related effects on the economy have led to hectic activities by the EU Commission, the federal government, and the German states to make State support services available at short notice and in a manner that is as unbureaucratic as possible. This article provides an overview of the measures taken at federal and state level and their legal framework ...
The legislator acts - Special regulations on, among other things, deferral of claims, insolvency law, tenancy law and loan agreements in Germany to come. At the end of March, the German legislator adopted special regulations in response to the COVID 19 pandemic in fast-track proceedings. The law was passed by the German parliament (Bundestag) on Wednesday, March 25, 2020, and, in a special session, also by the German Federal Council (Bundesrat) on Friday, 27 March, 2020 ...
The COVID-19 virus has a worldwide impact on travel activities, affecting foreigners such as employees of companies intending to travel to Germany as well as those who are already in Germany but are now effectively unable to leave. 1. RESTRICTIONS ON ENTRY AND VISA ISSUANCE The countries of the Schengen area have decided to impose entry restrictions on all non-essential travel from third countries ...
On April 1, 2020, the European Commission published a “Guidance on using the public procurement framework in the emergency situation related to the COVID-19 crisis” (Official Journal of the European Union, 2020/C 108 I/01). In particular, the Commission explains various options for awarding public contracts as quickly as possible within the European public procurement framework, which remains unchanged in this respect ...
Current status: March 31, 2020 Increasingly far-reaching restrictions with respect to the COVID-19 virus also bring to light the issue of timely drafting, auditing, adoption, and publication of annual and consolidated financial statements, in particular for listed companies. This against the background that capital market-oriented companies, i.e ...
