The reform of the Bankruptcy Law and the New Code of Business Crisis and Insolvency, introduced by Legislative Decree No. 14 of January 12, 2019, have imposed on Entrepreneurs new rules to prevent and monitor situations of Business Crisis resulting from financial difficulties and/or insolvency.

The Entrepreneur operating in a corporate form is therefore obliged to establish Adequate Organizational and Accounting Arrangements, as prescribed by Art. 2086 co. 2 of the cc. in force since March 19, 2019, as a result of the entry into force of the Business Crisis Code, and is therefore called upon to equip itself with Operational Procedures and Tools that enable it to develop and provide useful information to monitor the Company’s Performance and quickly intercept Crisis Signals.

WHAT IS THE ORGANIZATIONAL – ADMINISTRATIVE AND ACCOUNTING SETUPS

The Organizational Setup is represented by the Directives and Procedures in order to ensure that the Decision Making Process is assigned and exercised by appropriate level of competence and responsibility; therefore, it includes Directives and Procedures that define the Risk Management System and the Internal Control System.

The Administrative Setup refers to a dynamic – functional dimension of the Organization and can be traced to the Set of Procedures and Processes aimed at ensuring the proper and orderly conduct of business activities; it incorporates the Planning, Scheduling and Performance Control Systems, part of the Control Systems and the Information Systems.

The Accounting Setup is part of the Administrative Setup that are geared toward proper Accounting Interpretation of Management Acts, both for the Purposes of Planning and for the Purposes of Final Balance for Management and outside Communication of the Enterprise.

The Accounting Setup is represented by the General Accounting and Analytical Accounting Reviews, Reporting Processes, Corporate Performance Reporting and Investment Evalutation Systems.

SUITABILITY OF SETUPS

Organizational, Administrative and Accounting Setups must allow for the quickly detection of a state of crisis, therefore, they are adequate if they allow for the detection of:

• – Unbalance of an Economic Nature

• – Unbalance of a Financial Nature

• – Unbalance of Patrimonial Nature

• – Unsustainability of Debts

• – Presence of signs such as:

• – 30-day overdue payroll debts;

• – 90-day overdue suppliers’ debt;

• – 60-day overdue or overdrawn exposures to Banks and other Financial Intermediaries;

• – The presence of one or more debt exposures to Qualified Public Creditors: (Inps – Inail – Ag. delle Entrate – Riscossione);

• – Information needed to verify the reasonable pursuit of recovery.

TOOLS AND PROCEDURES FOR APPROPRIATE SETUPS

C.O.T.A.hotels, provides Tools and Expertise that allow the quickly detection of the state of Management in order to produce the forecast information related to the current and next fiscal year for at least the following twelve months as the Law, in this regard, requires.

The skills of the C.O.T.A. hotels Consultants, have been evaluated in the field of “Business Crisis” obtaining the ‘Registration in the Register of A.P.R.I. “Associazione Professionisti Risanamento Imprese” and assists Entrepreneurs, Hotel and Restaurant Companies with targeted actions to prevent and monitor the business crisis and, if necessary, as C.T.P. (Consulente Tecnico di Parte).

Do you want more info Contact us