Publicity of the inability to pay

Better public availability of information on the inability to pay would support healthy business and competition

Companies found unable to pay in recovery proceedings can still continue their business. For the company's contractual partners and especially consumer customers, the inability of a company to fulfil its obligations can cause considerable harm and financial damage when discovered in the middle of a contract.

Companies neglecting their statutory obligations can produce goods and services for the market at much lower prices than their competitors who take care of their obligations appropriately.

Increasing the impact of information on inability to pay by making it better available to the public

Information on a company's inability to pay should be easily available to everybody who has the need to assess the company's financial reliability.

The working group having investigated the problems caused by companies unable to pay suggests that the public availability of information on their incapability should be improved. Information on a company's verified inability to pay could be made available free-of-charge through the public business information system after the necessary law amendments.

Should companies unable to pay be removed from the trade register?

The working group also assessed whether a company's verified inability to pay should justify its removal from the trade register. However, the working group did not support the proposal, due to problems connected with the proposal and particularly with the legal position of the company removed from the trade register.

Final report of the working group in Finnish (PDF 799 kB)