Convicted fraudsters may be banned from company ownership

Company executives convicted of corporate fraud could be banned from setting up a new firm or restarting a bankrupt business under draft legislation being prepared by justice minister Ivo Opstelten.


Opstelten wants to introduce the ban using civil law, allowing the public prosecution service or the administrator of a bankrupt firm to apply for the executive to be blacklisted. In addition, the minister is looking at whether the chambers of commerce can set up a register of executives with such a black mark against their name.
The proposals will be put out to consultation with legal experts, employer organisations and the chambers of trade before being presented to parliament, Opstelten said in his briefing.
Bankruptcies
Opstelten also want to take steps to reduce the number of unnecessary corporate bankruptcies, such as introducing measures to stop creditors who disagree with the curator’s approach from forcing a bankruptcy.
Such moves are necessary because the number of bankruptcies in the Netherlands is running at an all-time high, Opstelten said in the 12-page briefing to MPs.

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