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Ban for conduct of economic activity shall be individualized

On 24th September 2015 Supreme Court (hereinafter as „SC”) issued an important rulling (case numer V CSK 689/14) for person who was banned the conduct of economic activity on his own or serving other functions specified in art. 373 item 1 of The Law on Bankruptcy and Reorganisation (hereinafter as “Bankruptcy Law”). Such ban may be ordered if a person by his own fault e.g. did not file a petition to declare bankruptcy in time or following the declaration of bankruptcy, concealed, destroyed or encumbered the assets included in the bankruptcy estate.

In this case, Przemysław Ch., President of Management Board of company, which shortly after taking office the President by Przemysław Ch. was put into liquidation. However, a petition to declare bankruptcy was filled by creditor, and before that Przemysław Ch. sold all company`s assets, pay some of its debts, but did not fill petition to declare bankruptcy. The bankruptcy court ruled against him three-year ban for all activities prescribed in art. 373 of Bankruptcy Law. However, Przemysław Ch. considered such ban as to strict and, as his appeal was rejected, he lodged a cassation appeal.

SC agreed with appellant. SC said that protective purpose of art. 373 of the Bankruptcy Law does not mean that bankruptcy court should resign from individualizing bans ordered according to aforementioned article. In SC opinion, such individualizing does not only concern time for which such ban is ordered, but also scope of activites specified in art. 373 item 1 of the Bankruptcy Law. Such individualizing results from art. 373 item 2 of the Bankruptcy Law, where is specified that court – during deciding about – shall take into consideration “the degree of fault and the implications of the actions or omission.”

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