Director disqualification under civil law

The director disqualification under civil law (civielrechtelijk bestuursverbod) exists to prevent fraudulent directors from forming new legal entities and continuing their ways unchecked, thus harming the market.

What is a director disqualification under civil law? 

Director disqualification under civil law is a legal instrument to temporarily ban directors committing bankruptcy fraud or mismanaging a company in the run-up to bankruptcy from running a legal entity. 

 
The Director Disqualification under Civil Law Act came into force on 1 July 2016. The person on whom the court imposes a director disqualification under civil law may, for a period of time determined by the court: 

• not serve as a director or supervisory director of a legal entity, unless the court grants exceptions to this in its ruling 

• not be given full authorisation 

• not represent a legal entity 

• not be appointed as a director or supervisory board member when a new legal entity is established 

Publication of director disqualifications 

KVK will start publishing director disqualifications under civil law as soon as the Handelsregisterbesluit (Commercial Register Decree) is amended.