Director disqualification under civil law
- Edited 20 January 2020
- 1 min
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.