Sanctioning of gross negligent conduct
In 2014, rules on bankruptcy quarantine entered into force. According to the rules, a person who has participated in the management of the debtor’s business can be deemed unsuitable for participating in the management of a business activity due to gross negligent conduct. To ensure that the rules are efficient and up to date, the Danish Ministry of Justice will complete an evaluation of these rules.
The commitment has specific rules on bankruptcy quarantine. In accordance with the preambles of the law, the Ministry of Justice was required to complete a review report five years after the implementation of the rules.
The commitment states an ambition to draft and publish a review report which evaluates the efficiency of the rules on bankruptcy quarantine five years after the implementation of the rules.
The Ministry of Justice was required to deliver an evaluation to the Danish parliament five years after the enforcement of the bankruptcy rules. In preparation to evaluate the rules on bankruptcy quarantine, in 2018 the Ministry of Justice issued a consultation with various public and private institutions.1 The consultation had focused on: i) the conditions for sanctioning; and ii) the efficiency of the bankruptcy quarantine system. In December 2019, the Ministry of Justice notified the Danish parliament that the evaluation had been delayed with an estimated delivery in Q1 2020. The evaluation was submitted to the Danish parliament in June 2020.2
It is recommended that the Ministry of Justice ensure that Konkursrådet, the Advisory Council of Bankruptcy, is provided with sufficient resources and support to assess how to implement the five recommendations from the report before July 2021.
- Høringsportalen, Høring over forslag til lov om ændring af hvidvaskloven og lov om finansiel virksomhed, https://hoeringsportalen.dk/Hearing/Details/6260417 December 2018
- Folketinget (Danish Parliament), Justitsministeriets evaluering af reglerne om konkurskarantæne, fra justitsministeren, https://www.ft.dk/samling/20191/almdel/reu/bilag/477/index.htm30 June 2020
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