Obligation on a person in the capacity of a statutory body to pay a fine for no previous bankruptcy

JUDr. Jakub Vozáb, PhD. 16.05.2016

Illustration for Obligation on a person in the capacity of a statutory body to pay a fine for no previous bankruptcy

Look, when the chief executive Ltd. be fined for no previous bankruptcy.

Legislation in the area of ​​bankruptcy and restructuring experienced in recent years, several key amendments. One of them was the introduction of a presumption that the limited liability company or a joint stock company and the person obliged to file for bankruptcy on its behalf (usually the manager or board member) was negotiated contractual penalty for late filing of a petition in bankruptcy in the amount of EUR 12 500.

Under the current wording of the Act no. 7/2005 Coll., Act on Bankruptcy and Restructuring, the person in the capacity of the statutory body, a liquidator or a person in a position of legal representative for the company to be filed for bankruptcy, within 30 days from when it knew or at maintaining professional care can learn about the indebted company.

Compared to the old law is thus obliged to file for bankruptcy only limited extension, ie. a condition in which the company has at least two creditors, the value of liabilities exceeds the value of its assets. In practice, this most often means that the equity of the company in the state of extension is negative.

Unless the person representing the company fails to fulfill its obligation to file for bankruptcy on time, in addition to high fines it threatened other sanctions. True fact that the final judgment of the court which decided to impose the obligation to pay liquidated damages is considered the decision to exclude. As a result of such a decision, the person disqualified to hold office a member of the statutory body, supervisory body and exercise other places in commercial companies and cooperatives, for a period of three years from the date the decision. The person concerned shall in such case registered in the register of disqualified persons and will be removed from the enumerated functions of the business register.

Finally, remember that any agreement between the company and the person liable to file for bankruptcy on its behalf, which excludes or restricts entitlement to liquidated damages, it shall be prohibited, with the social contract or statutes can not limit or exclude eligibility for the payment. The company can not claim for payment of a fine to give up or conclude in respect of that claim, a settlement agreement does not allow the set-off or other compensation arrangements.

Businesses should therefore closely monitor the state of the accounts and has not committed to their company got into a state of indebtedness. Otherwise, may occur on the part of entrepreneurs, some of the above-described consequences.

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