What is Act No. 312 / 2006 Coll.?

Act No. 312 / 2006 Coll., on Insolvency Managers — Insolvency Trustees Act.

When it became Act No. 312 / 2006 Coll. effectiveness?

Act No. 312 / 2006 Coll. became effective 01.01.2008.

Is Act No. 312 / 2006 Coll. still valid?

Yes, Act No. 312 / 2006 Coll. is still valid and effective.

How many times was it Act No. 312 / 2006 Coll. amended?

Act No. 312 / 2006 Coll. has 18 time versions of the text.

Act No. 312 / 2006 Coll. - Insolvency Trustees Act

312

THE LAW

of 23 May 2006

on insolvency administrators

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

INSOLVENTION MANAGERS

HLAVA PRVNÍ

BASIC PROVISIONS

§ 1

Subject matter

This law governs

(a) the establishment of the right to pursue the activity of the insolvency trustee (1);

(b) the list of insolvency administrators (hereinafter referred to as the list), the entries entered therein, the breakdown of the list, its management and the terms and conditions of entry in the list;

(c) the activity of the visiting insolvency administrator;

(d) the supervision of the activities of the insolvency administrator and the host insolvency administrator.

§ 2

Definition of terms

(1) An insolvency administrator is a natural person who is entitled to perform the activities of an insolvency administrator.

(2) The insolvency administrator is also a public trading company or a foreign trading company or a foreign association which provides the same guarantees as a public trading company and is established under the law of a Member State of the European Union, of the Member States of the Agreement on the European Economic Area (hereinafter referred to as "the foreign company") and which is entitled to pursue the activities of an insolvency administrator.

(3) The visiting insolvency administrator shall be a national of a Member State of the European Union, of the Member States of the Agreement on the European Economic Area or of the Swiss Confederation (hereinafter referred to as "the Member State '), who carries out the activities of an insolvency administrator in another Member State and who has the right temporarily or occasionally: 10) carry out the activities of the insolvency administrator in the Czech Republic.

(4) In addition, the visiting insolvency administrator shall mean a foreign company which provides the same guarantees of liability for members as a public company and which carries out the activities of an insolvency administrator in another Member State and has the right to temporarily or occasionally carry out the activities of an insolvency administrator in the Czech Republic.

§ 2a

Sensitive activity

The performance of the activities of the insolvency administrator of the debtor pursuant to Article 3 (2) shall be considered as sensitive under the Act on the Protection of classified information and on security competence.

HLAVA DRUHÁ

LEGISLATION TO ENSURE THE ACTIVITIES OF THE INSOLVENTION AUTHORITY

§ 3

Establishment of the right to pursue the activities of the insolvency administrator

(1) The right to pursue the activities of an insolvency administrator shall arise on the date of the acquisition of the legal power of authorisation to carry out the activities of an insolvency administrator (hereinafter referred to as "authorisation ').

(2) The right to exercise the function of an insolvency administrator of a debtor that is a financial institution with a special regime) or a securities dealer, an asset-linked token issuer, an electronic money token issuer, a service provider related to cryptoassets, a CSD, a settlement system operator, an investment vehicle market operator, an investment company, an investment fund of a pension company or a pension fund, or a debtor whose bankruptcy is dealt with by a reorganisation, or whose annual net turnover total under a special legislature (13) over the last financial year preceding the insolvency proposal has reached at least CZK 100 000, or who employs at least 100 employees in a working relationship, shall arise from the date of acquisition of the legal power of a special authorisation.

(3) Public commercial companies not yet registered in the Commercial Register are subject to the right provided for in paragraphs 1 and 2 on the date of registration of the Public Commercial Company which has been authorised or special authorisation in the Commercial Register.

Issue of authorisation and special authorisation

§ 4

Draft natural person

(1) The proposal of a natural person for the issue of an authorisation or special authorisation shall include:

(a) her name and, where appropriate, her name and surname, permanent residence, and, if she is not a resident, habitual residence (hereinafter referred to as "permanent residence"), citizenship, place of birth, birth, birth number and, if she is not a native, date of birth,

(b) the address to be registered and the days and hours specified therein (hereinafter referred to as the "office hours") in which it will operate; and

(c) the registration number of the certificate of completion of the insolvency practitioner's examination or the insolvency administrator's special examination.

(2) The proposal referred to in paragraph 1 shall be accompanied by:

(a) proof of compliance with the training conditions referred to in Article 6 (1) (b);

(b) proof of compliance with the condition of liability insurance referred to in Article 6 (1) (f); This does not apply if, at the same time as the application for authorisation or special authorisation of a natural person, a proposal by a public commercial company or a foreign company to which that natural person has attached a declaration pursuant to Article 5 (2) (a) is submitted,

(c) proof of compliance with the condition of integrity corresponding to a record of penalties or similar records issued by other States in which it has been continuously in the last 3 years for more than 3 months, which may not exceed 90 days; the recognition of the document issued by the competent authority of another Member State shall be subject to special legislation4),

(d) documents demonstrating compliance with the professional practice provided for in Article 6 (1) (e);

(e) proof of payment of the administrative fee;

(f) a statement of professional orientation for the purposes of registration in the relevant part of the list of insolvency administrators; and

(g) proof of compliance with the conditions of personnel and material equipment referred to in Article 6 (1) (g); This shall not apply if, at the same time as the application for authorisation or special authorisation of a natural person, a proposal from a public commercial company or a foreign company to which that natural person has attached a declaration pursuant to Article 5 (2) (a) is submitted.

(3) The lawyer, tax advisor or auditor shall add to the proposal a statement from the relevant Chamber that he is included in the list of lawyers, the list of tax advisors, the list of auditors; the notary shall attach proof that he has been appointed notary.

(4) The design of a natural person for the issue of a special authorisation shall be accompanied by a certified copy of the evidence of the safety competence of the natural person or the certificate of the natural person.

§ 5

Proposition of a public commercial company and a foreign company

(1) The design of a public commercial company or a foreign company for the issue of an authorisation or special authorisation shall include:

(a) a commercial firm;

(b) the registered office and the office hours in which it will operate;

(c) the identification number of the person (hereinafter referred to as the "identification number") when the issue of an authorisation or special authorisation by a public commercial company registered in a commercial register is proposed,

(d) the name and, where applicable, the names and surnames, the birth number and, if not assigned, the date of birth and permanent residence of the member of the natural person who is the statutory authority or member of the statutory authority through which he will carry out the activities of the insolvency administrator (hereinafter referred to as the "notified member"),

(e) the reference number of the registered partner or the special authorisation reference number of the registered partner.

(2) The proposal referred to in paragraph 1 shall be accompanied by:

(a) a declaration by the notified member that he will carry out the activities of the insolvency administrator pursuant to Article 3 (1) or the activities of the insolvency administrator of the debtor pursuant to Article 3 (2) only within a public company or a foreign company; the signature of the notified member must be officially verified,

(b) a document proving compliance with the condition of liability insurance pursuant to Article 8 (1) (c);

(c) proof of payment of the administrative fee;

(d) a statement of professional orientation for the purposes of entry in the relevant part of the list of insolvency administrators; and

(e) proof of compliance with the conditions of personnel and material equipment referred to in Article 8 (1) (e).

(3) The application referred to in paragraph 1 shall also be accompanied by a social contract where the issue of an authorisation or special authorisation by a public commercial company not yet registered in the commercial register is proposed.

§ 5a

The head office and the establishment of the insolvency administrator

(1) The seat of the insolvency administrator is the place whose address is entered in the list as the address of the head office. The insolvency administrator shall be obliged to carry out business at the head office in fact and mainly in official hours.

(2) If the insolvency administrator is:

(a) by a lawyer, his registered office on the list of lawyers,

(b) by a tax adviser, his registered office on the list of tax advisers shall be entered in the list;

(c) by an auditor, his registered office on the list of auditors shall be entered in the list;

(d) by a notary, the registered office of the notary office to which he was appointed shall be entered in the list.

(3) Where the insolvency administrator is a public commercial company or a foreign company, its registered office or, where applicable, the location of the organisational component registered in the business register shall be entered in the list.

(4) The operator of the insolvency administrator shall be the place the address of which is entered in the list as the address of the establishment. The establishment may not be located in a place not eligible for the pursuit of the activities laid down by the insolvency law. The insolvency administrator shall be obliged to operate in the establishment in the official hours.

(5) The activities of the insolvency administrator may be carried out in several establishments where the insolvency administrator has the right to own or use them. The insolvency practitioner may have only one establishment in the territory of one regional court. If the insolvency administrator has a registered office and an establishment in the district of a regional court, only the registered office shall be entered in the relevant part of the list under the districts of the regional courts.

(6) If they are a natural person, a public commercial company and a foreign company which has acquired the right to pursue the activities of an insolvency administrator pursuant to Article 3 (2), only the head office of the insolvency administrator shall be entered in a separate list.

(7) The registered office and establishment must bear the name and, where applicable, the name, surname and identification number of the insolvency administrator who is a natural person and the business name and identification number, indicating the name and, where applicable, the name of the registered member of the insolvency administrator who is a public company and the official hours referred to in paragraphs 1 and 4.

(8) The Ministry shall, by decree, determine the scope of the official hours of the head office and the establishment of the establishment, the layout of the official hours, the means of identification of the head office and establishment and the activity which the insolvency administrator is obliged to carry out in the establishment.

§ 6

Authorisation and specific authorisation of a natural person

(1) On a proposal, the Ministry of Justice (hereinafter referred to as "the Ministry") shall issue an authorisation to a natural person who:

(a) has full legal capacity;

(b) at a university in a Member State, obtained or recognised by a Member State the higher education of a master's programme;

(c) has passed the insolvency practitioner's examination;

(d) is fair,

(e) have for at least 3 years professional experience in the field of the performance of the function of insolvency administrator, in particular in the fields of law, economics, tax advice, accounting, audit or corporate governance;

(f) conclude, on its own expense, a liability insurance contract which could arise in connection with the performance of the function of insolvency practitioner under the law governing insolvency and its methods of resolution or with the activities of the staff of the insolvency administrator in the performance of their duties for the entire duration of that function (hereinafter referred to as the "Damage Liability Insurance Contract"); and

(g) has personnel and material equipment for the performance of the activities of the insolvency administrator pursuant to § 13a.

(2) On application, the Ministry shall issue a special authorisation to a natural person who:

(a) satisfies the conditions laid down in paragraph 1 (a), (b), (d), (e), (f) and (g);

(b) perform a special examination of the insolvency practitioner; and

(c) meets the conditions for carrying out sensitive activities under the Act on the Protection of classified information and on security competence.

(3) The conditions referred to in paragraphs 1 and 2 shall also be deemed to be met if they have been recognised by the Ministry under a special legislature4).

(4) An authorisation or special authorisation may be issued by the Ministry to a natural person only if no more than 6 months have elapsed on the date of the application from the date of the examination or special examination of the insolvency administrator.

(5) The validity of the authorisation and the special authorisation is limited to a period of 5 years from the date of the acquisition of the authorisation. On application for an extension of an authorisation or a special authorisation in which the insolvency practitioner provides evidence of payment of the administrative fee, the period of validity of the authorisation shall be extended by 5 years. The administrative fee shall be paid no later than the last day of validity of the authorisation.

(6) In order to demonstrate the integrity of a natural person, the Ministry shall, in accordance with the specific legislation of the Member States, request a statement from the Register of Penalties. An application for an extract from the Register of Penalties and an extract from the Register of Penalties shall be sent in electronic form in a way that allows remote access.

(7) Upon the acquisition of the legal power of authorisation, special authorisation, new authorisation or new special authorisation, the Ministry shall issue the certificate of the insolvency administrator to the natural person who is the insolvency administrator or the notified member of the insolvency administrator. The card shall contain the name and, where applicable, the name, surname and, where applicable, academic title, identification number and photograph of the natural person to whom the licence is issued and the date of validity. If the insolvency administrator is a public commercial company, the card shall also include its business firm and an indication of the reported member of the insolvency administrator; the identification number of the natural person shall be given instead of the identification number of the public company. The validity of the licence shall be the same as that of the permit or special authorisation of the natural person issuing the licence. The model of the Insolvency Trustee Certificate shall be determined by the Ministry by a decree.

§ 6a

(1) The Ministry shall, on a proposal of a permit or a special authorisation, issue to a natural person who has ceased to have the right to exercise the activities of an insolvency administrator pursuant to Article 12 (2), under the conditions laid down in Article 6 (1) and (3), and, if the application for the granting of the relevant authorisation has been filed within 3 months of the date of termination of the right to exercise the activities of an insolvency administrator pursuant to Article 12 (2).

(2) The application for an authorisation or special authorisation referred to in paragraph 1 shall contain the particulars referred to in Article 4 (1) and shall be accompanied by the document referred to in Article 4 (2) (b), (c) and (e). The application for a special authorisation shall also be accompanied by a certified copy of the document referred to in Article 4 (4).

(3) The authorisation or special authorisation referred to in paragraph 1 shall be limited in accordance with Article 6 (5).

§ 7

integrity

(1) The condition of integrity referred to in Article 6 (1) (d) is not met by a natural person,

(a) which has been convicted of a criminal offence committed in connection with the performance of the office of insolvency practitioner or which has been convicted of another criminal offence in so far as such criminal activity endangers the trust in the proper performance of the function of insolvency practitioner, unless it is regarded as not being convicted;

(b) which the insolvency court has rejected in the last 5 years before the application for remission of the remainder of its debts,

(c) the bankruptcy of which has been final in insolvency proceedings;

(d) which has been a statutory body or a member of a statutory body of a legal person in the last five years whose insolvency proceedings have been final;

(e) for which an obstacle to the function of a statutory authority, a member of a statutory authority or another body of a legal person who is an entrepreneur still persists;

(f) which has been revoked in the last 5 years before the submission of the proposal in accordance with the procedure laid down in Article 13 (2), or which has ceased to have a right under the decision referred to in Article 34; or

(g) which has been a declared member of a public commercial company or a foreign company for the last 5 years, where that company's authorisation or special authorisation has been revoked in accordance with the procedure laid down in Article 13 (2), or the right has expired following a decision pursuant to Article 34.

(2) The condition of integrity laid down in Article 8 (1) (d) is not met by a public commercial company or a foreign company,

(a) which has been convicted of a criminal offence committed in connection with the performance of the duties of insolvency practitioner or which has been convicted of another intentional offence where such criminal activity endangers the trust in the proper performance of the duties of insolvency practitioner, unless it is regarded as not being convicted; or

(b) which has been revoked in the last five years before the submission of the proposal in accordance with the procedure laid down in Article 13 (2), or which has ceased to have a right under the decision referred to in Article 34.

§ 8

Issue of authorisations and special authorisations of a public commercial company and a foreign company

(1) On a proposal from the Ministry, the public commercial company or foreign company shall be authorised,

(a) which has a notified partner authorised;

(b) whose notified partner has made a declaration pursuant to Article 5 (2);

(c) which has concluded a liability insurance contract for its cargo;

(d) which is fair, and

(e) which has personnel and material equipment for the performance of the activities of the insolvency administrator pursuant to § 13a.

(2) On a proposal, the Ministry shall issue a special authorisation to a public commercial company or foreign company,

(a) which fulfils the conditions laid down in paragraph 1 (b) to (e); and

(b) which has a notified member of the special authorisation.

(3) In order to prove the integrity of a legal person, the Ministry shall, in accordance with the special legislation, request (4a) an extract from the Register of Penalties. An application for an extract from the Register of Penalties and an extract from the Register of Penalties shall be sent in electronic form in a way that allows remote access.

(4) The conditions referred to in paragraphs 1 and 2 shall also be deemed to be met if a public commercial company or a foreign company fulfils equivalent requirements for obtaining the right to pursue the business of an insolvency administrator in another Member State. This fact must be documented by a public commercial company or foreign company to the Ministry.

(5) The authorisation or special authorisation referred to in paragraphs 1 and 2 shall also include the designation of the notified member or members.

§ 8a

The insolvency administrator's authorisation shall also be issued by the futile expiry of the period and in accordance with § 28 to 30 of the Law on the Free Movement of Services.

§ 8b

Issue of a new authorisation and a new special authorisation of a public commercial company or a foreign company

(1) The Ministry shall issue a new permit or special permit to the insolvency administrator in the event of a change in the person declared by the member or in the number of members declared.

(2) The provisions of this Act relating to the particulars of the application for authorisation or special authorisation of a public commercial company or a foreign company relating to the notified partner shall apply mutatis mutandis to the proposal referred to in paragraph 1.

(3) The Ministry shall issue a new authorisation or special authorisation to the insolvency administrator where one of the notified members has ceased to be a member of the public commercial company or foreign company.

Suspension of the right to pursue the activities of an insolvency administrator

§ 9

(1) The right to pursue the activities of the insolvency administrator is suspended from the insolvency administrator

(a) the date of publication of the insolvency decision of the insolvency practitioner in the insolvency register (1);

(b) the date on which the enforceable decision to take the insolvency administrator into custody became enforceable;

(c) the date on which the insolvency administrator took up the execution of a custodial sentence, the execution of a constitutional protective treatment or the execution of a security detention;

(d) if the insolvency administrator is a notified member of a public commercial company or foreign trading company, the date on which the public trading company or foreign trading company has acquired the right to pursue the activities of the insolvency administrator;

(e) on the date on which the decision by a court or administrative authority imposing a penalty or penalty on him against the prohibition of an activity is taken and, consequently, the insolvency administrator may not carry out the activities of the insolvency administrator;

(f) the date on which the right to exercise the activities of the insolvency administrator to a public company member or a foreign company has been suspended;

(g) the date on which the insolvency administrator became a member of the government, a member of the local authority, with the exception of a non-released member of the council under another legislature15), a Member or a Senator or another elected or appointed public office.

(2) The suspension of the right to exercise the activities of the insolvency administrator shall cease on the date on which the circumstances giving rise to the suspension of that right have ceased.

§ 10

(1) The Ministry may decide to suspend the right to exercise the activities of the insolvency administrator to the insolvency administrator,

(a) against whom the prosecution is being prosecuted

1. for an offence committed in connection with the performance of the activity of an insolvency administrator; or

2. For any other intentional offence that threatens confidence in the proper performance of the function of insolvency administrator,

not later than the date on which the decision terminating the proceedings becomes final; where the insolvency administrator is subject to a penalty, protective treatment or security detention for that offence, the suspension of the right to pursue the activities of the insolvency administrator to the insolvency administrator shall end on the date on which the decision of the Ministry to revoke the authorisation to pursue the activities of the insolvency administrator becomes final,

(b) where insolvency proceedings are pending in which its bankruptcy or imminent bankruptcy is resolved, and at the latest until the date of the final decision giving rise to legal power; where the insolvency administrator is decided to default, the suspension of the right to exercise the activities of the insolvency administrator shall end on the date on which the decision of the Ministry to revoke the authorisation to pursue the activities of the insolvency administrator becomes final; or

(c) where the procedure for its legal capacity has been initiated, no later than the date on which the decision terminating the procedure is taken.

(2) The Ministry shall publish an indication of the suspension of the right to exercise the activities of the insolvency administrator in the list on the date on which the decision was given.

§ 11

(1) The insolvency practitioner may not perform the business of the insolvency administrator for the period of suspension unless otherwise specified. The suspension of the right to pursue the activities of the insolvency administrator shall be without prejudice to the obligation of the insolvency administrator to be covered under the indemnity insurance contract, unless otherwise specified.

(2) For the duration of the suspension of the right to pursue the activities of the insolvency administrator pursuant to Article 9 (1) (d)

(a) the insolvency administrator may only carry out the activities of the insolvency administrator as a notified member;

(b) the insolvency administrator shall not be required to be insured under a liability insurance contract.

Decommissioning of the right to pursue the activities of the insolvency administrator

§ 12

(1) The right to pursue the activities of the insolvency administrator to the insolvency administrator shall cease to exist

(a) the death of the insolvency administrator;

(b) has been declared dead on the date of the court's decision to declare himself dead,

(c) where he has been deprived of legal capacity or whose legal capacity has been restricted on the date of legal power, the decision of the court which deprived him of legal capacity or whose legal capacity has been restricted;

(d) the date on which the public commercial company or foreign trading company is wound up;

(e) if the Ministry has submitted a written notice of termination of the activity of the insolvency administrator on the last day of the calendar month following that in which it was served,

(f) if it is a public commercial company or a foreign trading company, the date on which the right to exercise the activities of the insolvency administrator to its registered partner or the date on which the notified partner ceased to be a member of a public trading company or foreign trading company.

(2) The right to pursue the activities of an insolvency administrator shall also cease to exist to the insolvency administrator 5 years after the date of the acquisition of the legal authorisation and, if it is the insolvency administrator of the debtor pursuant to Article 3 (2), 5 years after the acquisition of the legal power of the special authorisation, if the validity of the relevant authorisation has not been extended in accordance with the procedure laid down in Article 6 (5).

§ 13

Repeal of authorisation or special authorisation

(1) The Ministry shall abolish:

(a) an authorisation to an insolvency administrator which does not fulfil any of the conditions laid down in Article 6 (1) or Article 8 (1); or

(b) a special authorisation to an insolvency administrator which does not fulfil any of the conditions set out in Article 6 (2) or Article 8 (2).

(2) The Ministry may revoke the authorisation or special authorisation of the insolvency administrator who has seriously infringed or repeatedly infringed the obligation laid down in this Act, the Control Code, the Preventive Restructuring Act or the Insolvency Act.

§ 13a

Personnel and material equipment of the insolvency administrator

(1) For its activities, the insolvency administrator shall provide personnel equipment which is its staff and material equipment, in particular its head office and, where appropriate, its premises, and their material equipment.

(2) The personnel and material equipment of the insolvency administrator must be proportionate to the nature, scale and complexity of the activities it carries out.

(3) The content of the material equipment requirements of the insolvency practitioner is laid down in the implementing legislation.

§ 13b

Staff of the insolvency administrator

(1) The staff member of the insolvency administrator involved in the activities carried out in the performance of the function of insolvency administrator must be fair within the meaning of Article 7 (1) and must have at least a secondary education with a graduate examination accompanied by professional experience of at least 6 months.

(2) The professional practice referred to in paragraph 1 shall mean the pursuit of an activity carried out in the length of a specified weekly workings16) and consisting of professional work in the field of the performance of the function of insolvency trustee, in particular in the fields of law, economics, tax advice, accounting, audit or corporate governance.

(3) A staff member authorised to represent the insolvency administrator in a court of law must have a university legal or economic education in a master's study programme.

§ 14

Information obligation of the insolvency practitioner

(1) The insolvency administrator shall inform the Ministry of any facts which may result in the suspension of a right under § 9 or § 10, the termination of a right under § 12 or the revocation of a permit or special permit under § 13 (1); immediately and no later than 15 days from the date on which the operative event occurred.

(2) The insolvency administrator shall inform the Ministry of the change in the data entered in the list if the change in the data is not known to the Ministry from its own activities and provide evidence of the change in that data; immediately and no later than 15 days from the date on which the operative event occurred.

(3) The insolvency administrator shall submit to the Ministry once a year, no later than 2 months after the end of the previous calendar year, proof that the liability insurance for damages has taken place throughout the entire period of performance of the functions of the insolvency administrator in the previous calendar year.

§ 15

Information obligation of the Ministry

The Ministry shall immediately inform the competent authority of the granting of the authorisation, the issuing of the special authorisation, the suspension of the right to exercise the activities of the insolvency administrator and the termination of the right to exercise the activities of the insolvency administrator.

HLAVA TŘETÍ

LIST

Citation	Act No. 312 / 2006 Coll., on Insolvency Managers
Regulation Type	Law
Author	-
Collection	Code of Laws

Date of Promulgation	22.06.2006
Effective from	01.01.2008
Effective until	-
Status	Valid

Act No. 312 / 2006 Coll.

Insolvency Trustees Act

Contents