The Code of Corporate Crisis and Insolvency (Legislative Decree no. 14 of 12 January 12 2019) (the “Code”) was published in the Italian Official Gazette on 14 February 2019. The Code will enter into force on 15 August 2020 (18 months after its publication), except for certain articles, principally regarding several amendments to the Italian CCode, which will enter into force on 16 March 2019. The main amendments vis-à-vis the previous law are the following: • Lexical change: from “bankruptcy” to “judicial liquidation” The term “bankruptcy” (fallimento) is replaced by the term “judicial liquidation” (liquidazione giudiziale). The goal of this lexical change is to reduce the negative repercussions of the term on the business entity which is in financial difficulty. • Definition of “status of crisis” The Code introduces the new concept of “status of crisis”, which is defined as “an economic and financial difficulty which will probably lead to the insolvency of the debtor”. The definition of “insolvency” remains unchanged. • Crisis alert mechanisms and benefits For the purposes of pressing the management body of a company to timely deal with a situation of crisis, the Code contains specific alert mechanisms. In particular, the Code provides: a) Alert duties of the supervisory bodies of companies (sole statutory auditor, board of statutory auditors, auditing firms). They have to immediately advise the company management body in case of serious evidence of a crisis situation.