Question juridique clé
Whether an over-indebted stock corporation may file a composition petition instead of making a bankruptcy notice under Art. 725(3) OR
Solution extraite
Yes. The company may pursue composition proceedings even if over-indebted; Art. 725(3) OR does not exclude a petition under Art. 293 SchKG.
Motifs extraits
The court held that the composition provisions are applicable to the statutory prerequisites and that neither the wording nor the legislative history of the SchKG shows an exclusion for stock corporations in over-indebtedness. Later insolvency legislation and the new Art. 173a SchKG confirm that a composition petition may precede the bankruptcy notice. Failure by the board to report over-indebtedness may create liability, but it does not deprive the debtor of access to composition relief.