Legislative reforms are aimed to stop profitable businesses from having bankruptcies.
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| Julia Herr |
The SPO identifies insolvency law deficiencies. The SPO stated that this needed to be solved in order to stop deals like the investor Rene Benko's sale of Kika/Leiner. Until now, a few billionaires have been able to enrich themselves at the cost of the broader people. According to Julia Herr, the deputy SPO party chairperson, "In the end, the employees and the taxpayers are the dumb ones.
In light of this, the SPO further declared that the group insolvency legislation should stop bad - i.e., loss-making - elements of the firm from being "thrown away and thus also put people on the street" in the case of a takeover.
Another suggestion states that the debtors' claims ought to be exchanged for business stock. Therefore, the survival of the business would be in the interest of both owners and creditors. The SPO cites Germany and the United States as examples.
Another proposal would require that tax money be given back first, much like in the Netherlands. Additionally, the SPO needs its own authority with the necessary resources in order to evaluate and handle significant insolvencies.
The plan's sixth recommendation envisions expanding the responsibility for corporations that have been split off: This means that the firms that were split off would also be jointly responsible for the harm the split produced. Managing directors and board members have up until now been responsible for this.
However, the SPO is confident that a similar modification in the legislation would make the separation of operational business and real estate business, as with Kika/Leiner, less desirable.