Insolvency Control Service is a state authority controlled by the Minister of Justice.
It has been established in 2002 (as Insolvency Administration) according to the Law on Public Agencies, the Law on the Protection of Employees in the Event of the Insolvency of their Employer, the Insolvency Law and other regulations.
The goal of the Insolvency Control Service is:
- to implement the state’s policy in the field of insolvency proceedings - debtor’s legal protection proceedings, insolvency proceedings of a legal person and insolvency proceedings of a natural person.
- to protect employees’ interests in the event of their employers insolvency proceedings.
- to protect the state’s and public’s interests in the field of insolvency proceedings in accordance with current legislation.
The Insolvency Control Service performs the following functions:
- recommends administrators to courts;
- monitors the activities of administrators’ during insolvency proceedings;
- holds and deals with resources and settles employees’ claims from the guarantee fund for employees’ claims according to the Law on the Protection of Employees in the Event of their Employers Insolvency Proceedings;
- ensures covering of the costs of insolvency proceedings of a legal person from the deposit in the cases provided by the Insolvency Law;
- represents the interests of the state in insolvency proceedings;
- performs other functions placed on the Service according to the legislation and the management agreement.
To implement the above mentioned functions the Insolvency Control Service:
- performs a random selection of certified administrator candidates for each particular insolvency proceedings and recommends him or her to the court;
- controls the legality of administrator’s activities during insolvency proceedings;
- examines complaints about the decisions taken and activities performed by administrators;
- receives and examines applications on the settlement of employees’ claims submitted by the administrators of insolvent employers, and takes decisions on the settlement of employees’ claims from the resources of the guarantee fund for employees’ claims;
- receives and examines applications on covering administration expenditure of insolvency proceedings submitted by the administrators of insolvent employers, and takes decisions on granting such funds;
- exercises the right to file creditors’ claims against insolvent enterprises and companies within the limits of settled employees’ claims and covered administration expenditure of insolvency proceedings;
- takes decisions on the payment of the deposit in insolvency proceedings of a legal person in the cases provided by the Insolvency Law;
- organizes the development of methodical and informative materials relating to insolvency proceedings;
- organizes exams for administrator applicants and qualification exams for administrators;
- organizes qualification improvement events for administrators;
- ensures information exchange in the field of insolvency proceedings by means of cooperation with international institutions;
- compiles and submits proposals on improvements of the current legislation relating to insolvency proceedings;
- ensures the protection of personal data and other information, that is at the disposal of the Service;
- performs other activities provided for by the legislation, which are deemed to be necessary to fulfil the tasks of the Insolvency Control Service.