Deliberate Bankruptcy Will Be Punished Ninety Times As Much

The presidential administration has decided to toughen the penalties for willful and deliberate bankruptcy of enterprises. According to the draft of the new Code of Administrative Violations, the fine will be AZN 90 times stronger than it is now.

If the parliament approves the amendments, the new edition of the Code will enter into force on 1 May of next year. According to article 405 of the bill, deliberate bankruptcy in order to delay or extend the maturity of its debt or to reduce its size or evade repayment involves a fine for officials in the amount of 1-2 thousand manat and for legal entities - 10-12 thousand manat.

Recall that the current penalties for false bankruptcy constitute 55-70 manat for officials and 110-200 manat for legal entities.

According to article 406 (premeditated bankruptcy in the interest of other persons), fine for officials is 2-3 thousand manat (currently 65-90) and for legal entities - 12-15 thousand manat (160-240 manat).

According to Article 407 (concealment of the head or owner of debtor organization of property obligations, data on property, its size, location, etc.), it shall entail a fine ranging from twice to four times the size of the damage (earned income). --17D-