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Swedish Law ? Company Reorganisation - Company?s obligations

During the reorganisation the company has to provide the administrator with all financial information of significance in the reorganisation and shall comply with the administrator?s instructions regarding the way the company?s business shall be conducted.

The Company needs the consent of the administrator

• to pay debts incurred prior to the reorganisation decision by the court,
  
• to provide security for such debts,
  
• to incur new obligations and
  
• to transfer, pledge or grant any rights in property of material significance to the company?s business.

If the company fails to obtain the administrator?s consent this does not affect the validity of the company?s action.

It should be noted that the administrator may give his consent only where special cause exists.

Full post as published by Swedish Law Blog on February 26, 2009 (boomark / email).