I guess what it means is that their protection from paying a debt has been extended. This means the share holders are given another six months to get the business solvent as to ensure payment otherwise the court will be forced to liquidate the shareholder's property to pay the debt.6. What are the rules relating to detrimental acts?
The observation period starts on the date of cessation of payments and ends on the date when proceedings are opened. The court cannot fix a longer period than eighteen months.
All acts performed for payment during this period may be declared void if the contracting party was aware of the cessation of payments. The court has the power to decide on annulment.
Some acts, exhaustively listed by the law, must be declared void if they were performed during the observation period, whether or not the contracting party was aware of the cessation of payments. They include contracts in which the debtors duties considerably exceed those of the other party, a payment made by a means not ordinarily accepted, a mortgage for a prior debt and any other act that is free of charge.
-- Bridget
