On the proposal for a directive of the European Parliament and of the Council harmonising certain aspects of insolvency law
A-10-2025-0126
Committee on Legal Affairs · Rapporteur: Emil Radev
- Voted on · Adopted 498–90–28 · See the decision →
- Full procedure 2022/0408
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
Parliament's amended version of the proposed directive harmonising certain aspects of insolvency law sets common rules on avoidance actions, asset tracing, pre-pack proceedings, directors' duties, and creditors' committees.¶¶¶ It deletes provisions on simplified winding-up proceedings for microenterprises, leaving member states free to maintain or introduce such rules.¶¶¶ The text strengthens creditor protection, enhances access to information for insolvency practitioners, and clarifies directors' obligations and liability.¶¶¶
Committee position. The Committee on Legal Affairs proposes amendments to the Commission proposal, including deleting Title VI on simplified winding-up proceedings for microenterprises and strengthening provisions on avoidance actions, asset tracing, and creditors' committees.¶¶¶
Key points
- Legal acts detrimental to creditors must be void, voidable or unenforceable; avoidance actions cover acts within specified periods before insolvency filing.¶¶¶
- Certain acts are exempt from avoidance, including those performed against fair consideration benefiting the debtor's assets, and netting arrangements in financial markets.¶¶
- Parties closely related to the debtor are presumed to know of the debtor's insolvency; the presumption is rebuttable.¶¶¶
- Insolvency practitioners may access bank account registers, beneficial ownership registers, and national registers directly, with safeguards for personal data.¶¶¶
- Pre-pack proceedings consist of a preparation phase and a liquidation phase; the monitor must be independent and the sale process must be fair and transparent.¶¶¶
- Executory contracts necessary for the business may be assigned to the acquirer without consent, except for IP licenses and credit or financial services contracts.¶¶
- Directors must request insolvency proceedings within three months of becoming aware of insolvency; liability for damages follows breach.¶¶
- Creditors' committees must fairly represent creditors, including workers, and act independently and in good faith.¶¶¶
- Member states must provide a key information factsheet on insolvency law via the European e-Justice Portal.¶
Who is affected
- Insolvency practitioners gain broader access to registers and databases across member states.¶¶¶
- Directors of insolvent legal entities face new duties and potential liability.¶¶
- Creditors, including workers, may participate in creditors' committees.¶¶
- Microenterprises are no longer subject to mandatory simplified winding-up rules; member states may choose to apply them.¶¶
Figures and deadlines
- three months prior to submission of request for opening insolvency proceedings¶
- one year prior to submission of request for legal acts against inadequate consideration¶
- three years prior to submission for intentional detriment acts¶
- three years limitation period for claims from avoidance¶
- 30 days from opening of insolvency proceedings for appointment of creditors' committee¶
- 5 working days for court certification of appointment¶
- 3 months after directors became aware of insolvency for filing request¶
Legal basis: Article 294(2) and Article 114 of the Treaty on the Functioning of the European Union¶