Introduction of director’s disqualification for bankruptcy fraud
It has been legally possible with effect from the first of July of this year to have the civil court – upon the request of the public prosecution service or the trustee in bankruptcy – impose a director’s disqualification on any company director who has committed bankruptcy fraud or has engaged in inappropriate acts or actions in the run-up to his or her company’s bankruptcy. The maximum term of such director’s disqualification has been fixed at five years. This recent amendment of the Netherlands Bankruptcy Act must be seen as part of the drive against bankruptcy fraud and irregularities in a bankruptcy context, barring as it does for a particular period of time the appointment to the executive and supervisory boards of legal entities of any company director who has had such a director’s disqualification imposed upon him or her.
A second element of the drive against bankruptcy fraud has been the strengthening – with effect likewise from the first of July of this year – of the legal position of the trustee in bankruptcy, by classifying mismanagement of administrative accounts and failure to keep the relevant records on file in the run-up to the bankruptcy as criminal offences.
Dutch version: Invoering bestuursverbod na faillissementsfraude