Director disqualification act entered into force on 1 July 2016

On 1 July 2016, the Director disqualification act entered into force as a result of which the Insolvency act has been amended. The act enables the disqualification of managing directors for a maximum period of five years. The purpose of the act is to combat bankruptcy fraud and to prevent that managing directors can continue their fraudulent activities as a managing director or member of the supervisory board of a corporation.

A director disqualification is imposed by the civil court upon the request of the Public Prosecution Service or the bankruptcy trustee of the bankrupt legal entity of which the person involved was a managing director and will be registered with the trade register of the Chamber of Commerce.