1st April 2013

Chamber of Deputies: Trustees in bankruptcy under stricter condition

On 27 March, the Chamber of Deputies passed an amendment to the Act on Insolvency (insolvenční zákon). The amendment primarily regulates the process of state authorizing trustees in bankruptcy. The Bill reflects the governmental anti-corruption program. The Government seeks to regulate legal persons that may interfere in entrepreneurial condition and guarantee the impartiality of the trustees and high standards of their activities. The Ministry of Justice is authorized to control the trustees’ in bankruptcy activities. 
The Bill stipulates main principles for trustees that should be fulfilled in order to gain the state authorization. The integrity and clean record are among the most important ones. The Ministry also supervises the process of state examination. The examination of trustees is stipulated. The Bill also regulates the process of recognition foreign trustees in bankruptcy.
The Chamber of Deputies has passed amendment that had been proposed by Deputies in the second reading. Among others, amendments introduce the five-year legal term in which the state authorization should expire.
The Bill is heading to the Senate.
For further information, click here (explanatory report, amendments, discussion at the floor).

Members of the American Chamber of Commerce in the Czech Republic