Former chief executive disqualified from managing a business for three years

In a case where Plesner acted as the trustee a former chief executive was disqualified from managing a business for three years.

Prior to the bankruptcy the insolvent company carried on business activities in the form of the development and mounting of concrete floor constructions and the company performed contract work in connection with the construction of DR Byen, the home of the Danish Broadcasting Company. The company's main activities were discontinued in 2004 and the company subsequently only existed because the Danish Broadcasting Company had instituted arbitration proceedings against the company concerning defects in the contract work.

The chief executive had thrown away all the company's business papers, including the company's accounting documentation. The creditors had suffered total losses of approximately DKK 85m and at the time of the bankruptcy the company had no assets worth mentioning. The claims of approximately DKK 85m lodged against the estate in bankruptcy were almost exclusively made up of two claims for full indemnity or partial contribution lodged by the company's insurance companies. 

Apart from the above, the chief executive appeared to have managed the company prudently and in accordance with the applicable statutory rules and regulations.

The Enforcement Court found that the Danish Bookkeeping Act has been breached and referred to the significant losses suffered by the creditors. Consequently the chief executive was found to be unfit to manage a business and he was disqualified from managing a business for three years. 

This decision shows that even isolated offences that are sufficiently serious may give rise to disqualification from managing a business.

Please direct questions concerning the decision to Attorney-at-Law Victoria Grevit Eriksen or Assistant Attorney Tobias Weibel.

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