Grapini said the new law targets, among others, to eliminate insolvency-related fraud.
Speaking about the law regarding SMEs, which has not been amended since 2004, Grapini said she is hoping the law will be approved in September, at the beginning of the Parliament’s fall session.
Under the new law, managers who cause a firm to enter insolvency will have to cover partially or totally the debts registered by the firm from their own pocket and will not be allowed to run other companies for ten years.
Managers are held accountable for the insolvency if they used the firm’s goods and money in their own interest and signed contracts or engaged in activities that harmed the company, as well as for mismanagement and faulty accounting.