Skip to main content
EnglishGeneral

Legal Impacts of Coronavirus on Companies

By 20 March 2020October 31st, 2022No Comments

On 13th March 2020, the World Health Organization (WHO) declared Covid-19 as a pandemic. The declaration of the World Health Organization is followed by European and North American states’ declaration of the state of emergency. In this article, we will be examining the potential legal impacts of Coronavirus on companies.

 

POTENTIAL LEGAL IMPACTS OF CORONAVIRUS ON COMPANIES

 Influence of the Pandemic on Countries

 

 

Even if the mortality rate of the virus isn’t as bad as other virus-like SARS, its ability to spread quickly made the virus a global issue that is going to have consequences on economies.

 

Firstly, we’ve seen that the price of brand petrol has sharply decreased by around USD 20. Such a decline is expected to have an influence overgrowth of economies that are dependent on the extraction of natural resources. Whereas, It seems like an opportunity for countries that are dependent outside for energy since it will have a positive effect on current account balances. Thus a decline in inflation by 0,5-1,01% is expected.

 

 

In country-specific, China is experiencing a slow down on its industry which contributes 32% to its GDP. Also, retail sales are negatively affected by the nation-wide state of emergency since It cuts down the demand.

 

Tourism (has a contribution to GDP by 2%) is also under the influence of the virus because flights to mainland China are canceled from the majority of the world. Thus the Chinese GDP growth rate in the first quarter of 2020 is expected to become 3%.

 

 

On the other hand, Italy suffers the most from the virus since the country has the highest number of infected people in the European continent.  The region of Lombardy faces the most infected people in Italy and the region contributes roughly 22% of the country’s GDP. Considering Italy’s GDP growth rate was only 0,2% in the past year, economists expect Italy to have a negative growth rate for 2020.

 

Potential Legal Results of Coronavirus on Companies

 

 

A recently completed research on companies shows that at least 51% of attendants have no plans or protocols for a potential outbreak of the virus. According to the research, 27,2% of the companies from worldwide have zero preparations or whatsoever for the state of emergency and, only  24% of the attendants are under the development of making an emergency plan. The results show us that 92% of the companies would prefer their employees to work from their homes in case of a total shutdown of their offices.

 

 

Procedures of options such as:

 

  1. Bankruptcy,
  2. Expropriation,
  3. Deferred Debt and
  4. Tax Credit Deferral varies from country to country

 

 

The potential impact of coronavirus via state of emergencies on the contracts will be another crucial issue for business. Contracts must be checked carefully according to chosen law and parties before making any decision such as termination, defer obligations, etc.

 

 

Countries issue economic support packages for companies to avoid bankruptcies in these extraordinary situations. Our team follows all government decrees to support our clients. Please do not hesitate to contact us.

 

  1. Hungary Government Decrees on Coronavirus
  2. Poland Government Decrees on Coronavirus
  3. Turkey Government Decrees on Coronavirus
  4. Germany Government Decrees on Coronavirus
  5. Serbia Government Decrees on Coronavirus
  6. Kuwait Government Decrees on Coronavirus
  7. USA Government Decrees on Coronavirus (State by State)
  8. Estonia Government Decrees on Coronavirus
  9. Czech Republic Government Decrees on Coronavirus

What We Do

 

In these extraordinary days, we provide legal services for any negative issues your company may encounter due to the coronavirus. As an innovative international law firm and thanks to our online meeting tools, Gurcan Partners continues to provide legal services by implementing the rule of preserving the distance among individuals that recommend by health care experts from all over the world, because we care for your health.

 

We can schedule your online meeting for 9 different countries with experienced and expert attorneys in their field. In these online meetings, the companies will be informed in terms of local law and procedures, the client’s needs will be clearly identified, and consultancy will be provided on legal and tax issues within the framework of country regulations.

 

 

Gurcan Partners provides tailor-made legal services in 9 countries, in 13 languages.

Please contact us

We will back to you within 24 hours.

@: [email protected]

Or Call Us

Hungary Office:

+ 36 1 808 9449 (English)

Germany Office:

+49 211 976 35 818 (English)

Czech Republic Office:

+420 234 717 540 (English)

Poland Office:

+48 22 153 03 60 (English)

Turkey Office

+90 850 466 42 60 (English)

Estonia Office

+372 60 26 570  (English)

 

Our international team is ready to help you in 13 languages. Please do not hesitate to contact us.

 

Check out Gurcan Journal for more articles in 13 languages. Schedule your online meeting below.

Gurcan Partners Coronavirus Desk:

  1. Coronavirus Hotlines in 9 Countries
  2. Impacts Juridiques Potentiels du Coronavirus sur les Entreprises
  3. Coronavirus and Remote Working
  4. Koronavirüsünün Hukuki Etkileri
  5. Aktuellen Covid-19 Situation in Deutschland.
  6. Current Covid Situation in Germany
  7. Korona Virüsü ve Uzaktan Çalışma

 

Legal Impacts of Coronavirus on Companies

Feride Zülal San LLBs

Serhat İlhanlı LLBs

Gurcan Partners 

Gurcan Partners

 

All rights reserved. All rights of Remote Working in the Light of Coronavirus Outbreak article belong to Gurcan Partners. The author has no responsibilities from the information in this article. This article is prepared just to inform.

Please contact us via mail. We endeavor to respond within 24 hours.

Please contact us via mail. We endeavor to respond within 24 hours.

We will back to you within 24 hours.

@: [email protected]

Or Call Us

Hungary Office:

+ 36 1 808 9449 (English)

Germany Office:

+49 211 976 35 818 (English)

Czech Republic Office:

+420 234 717 540 (English)

Poland Office:

+48 22 153 03 60 (English)

Turkey Office

+90 850 466 42 60 (English)

Estonia Office

+372 60 26 570  (English)

 

Schedule Your Online Meeting

href="https://calendly.com/gurcanpartners/30min" data-color-override="false" data-hover-color-override="false" data-hover-text-color-override="#fff">Button Text[rd_cf7 animation=”rda_fadeInLeft” text_color=”#192753″ font_weight=”900″ button_color=”#192753″ button_hover_color=”#1e73be” btn=”big” id=”8055″]