Declaration Of Solvency Form for Germany

Declaration Of Solvency Form Template for Germany

A Declaration of Solvency Form under German law (Solvenzerklärung) is a formal legal document where company directors or managing board members declare their company's ability to meet its financial obligations and continue as a going concern. This document, governed by the German Insolvency Code (Insolvenzordnung - InsO), requires detailed financial information and projections to support the declaration. It serves as a crucial tool in corporate governance, particularly during significant corporate actions, restructuring, or when required by regulatory authorities. The declaration carries significant legal weight, with directors potentially facing personal liability for false or misleading statements.

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What is a Declaration Of Solvency Form?

The Declaration of Solvency Form is a critical document required under German corporate and insolvency law, particularly relevant during significant corporate transactions, restructuring efforts, or when addressing financial concerns. It serves as a formal attestation by company leadership regarding the entity's financial health and ability to meet its obligations. The document requires comprehensive financial analysis, including current assets and liabilities, cash flow projections, and assessment of future business viability. Under German law, this declaration carries significant legal implications, with directors potentially facing personal liability for inaccurate statements. The form must comply with the Insolvenzordnung (InsO) and related corporate legislation, making it a crucial tool for maintaining transparency and protecting stakeholder interests.

What sections should be included in a Declaration Of Solvency Form?

1. Declarant Details: Full legal name, position, and company details of the person making the declaration

2. Company Information: Legal name, registration number, registered office address, and type of company

3. Declaration Statement: Primary statement confirming the company's solvency and ability to pay its debts

4. Financial Position: Current summary of assets and liabilities, confirming positive net asset position

5. Debt Service Capability: Statement regarding ability to service existing and foreseeable debts

6. Going Concern Assessment: Declaration regarding the company's ability to continue operations for the foreseeable future

7. Director's Confirmation: Confirmation that full inquiry into company affairs has been made

8. Statutory Declaration: Formal declaration under penalty of perjury that all statements are true

9. Execution Block: Space for signature, date, and witness/notary attestation

What sections are optional to include in a Declaration Of Solvency Form?

1. Group Company Statement: Additional declarations regarding solvency of group companies and inter-company obligations, required for companies within a corporate group

2. Pending Transactions: Details of any significant pending transactions that could affect solvency, required when major transactions are imminent

3. Contingent Liabilities: Statement regarding guarantees, warranties, or other contingent obligations, recommended when significant contingent liabilities exist

4. Pension Obligations: Details of pension scheme obligations and funding status, required for companies with significant pension commitments

5. Restructuring Measures: Information about ongoing or planned restructuring measures, required when company is undergoing reorganization

What schedules should be included in a Declaration Of Solvency Form?

1. Schedule A - Balance Sheet: Detailed current balance sheet showing assets and liabilities

2. Schedule B - Cash Flow Projection: 12-month cash flow forecast demonstrating ability to pay debts

3. Schedule C - Creditor List: Complete list of creditors, including amounts owed and payment terms

4. Schedule D - Asset Valuation: Current market valuation of significant company assets

5. Appendix 1 - Supporting Documents: List of reviewed documents used to make the solvency assessment

6. Appendix 2 - Expert Reports: Any independent expert opinions or valuations relied upon

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Declaration Form

Cost

Free to use
Relevant legal definitions
Relevant Industries

Financial Services

Manufacturing

Retail

Technology

Real Estate

Construction

Healthcare

Professional Services

Energy

Transportation and Logistics

Telecommunications

Hospitality

Mining and Resources

Agriculture

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Governance

Compliance

Risk Management

Treasury

Audit

Executive Leadership

Company Secretariat

Corporate Affairs

Accounting

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Finance Director

Board Member

Company Director

Corporate Secretary

Financial Controller

Head of Legal

General Counsel

Compliance Officer

Audit Director

Treasury Manager

Risk Manager

Corporate Governance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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