Meaning
Statutory prohibitions under German insolvency law prevent corporate directors from making payments after the company has become illiquid or overindebted. The rules of zahlungsverbot section 15b restrict the disposal of company assets during the critical period between the onset of insolvency and the formal filing. This restriction protects the remaining assets for the benefit of the general body of creditors.
Board Restriction
Directors must scrutinize every outgoing payment once the company is in a state of insolvency. Under zahlungsverbot section 15b, only those payments that are compatible with the care of a prudent businessperson are permitted. This narrow exception covers expenditures that are absolutely necessary to preserve the value of the business, such as essential utility payments or security services.
Any discretionary payment to selected suppliers or affiliates is strictly prohibited during this phase.
Financial Impact
The prohibition aims to stop the preferential treatment of certain creditors at the expense of others. Through zahlungsverbot section 15b, the law ensures that the remaining liquidity is preserved for distribution under court supervision.
Liability Trigger
Directors face direct liability to reimburse the company for payments made in violation of this rule. This personal liability under zahlungsverbot section 15b is difficult to defend against without documented expert assessments of solvency status.
