The insolvency control service shall implement the State policy in matters of the legal protection process and insolvency proceedings and protect the interests of employees in the insolvency proceedings of their employer.
The control and supervision of insolvency practitioners and persons supervising the legal protection process is one of the main tasks of the Insolvency Control Service, which it carries out to exercise the protection of public and public interests in matters relating to legal protection and insolvency proceedings.
The Insolvency Control Service shall perform the planned, unplanned, implementation inspections of the recommendations of administrators and the person supervising the legal protection process.
The inspections shall ensure the possibility of verifying in a timely and comprehensive manner the requirements of the regulatory enactments regulating the conformity of the administrator with the requirements of insolvency in a specific insolvency process.
The examination shall result in an objection, a positive or negative report. Depending on the nature of the infringement, after drawing up the report, the Insolvency Control Service may take a decision:
- the recognition of the infringement, including the imposition of a legal obligation;
- to submit an application to the court for the removal of the administrator;
- provide a report to the Director of the Insolvency Control Service regarding the assessment of the conduct of the administrator and the person supervising the legal protection process within the framework of disciplinary proceedings, etc.
A complaint has the right to submit a complaint to a creditor, a commercial company (in legal protection proceedings), a natural person (in the insolvency proceedings of such person), a debtor's representative (in the insolvency proceedings of a legal person) or a third person whose legal rights have been infringed.
The limitation period for the lodging of a complaint shall be one year after the date of termination of the legal protection proceedings or insolvency proceedings. It should be noted that, both during the proceedings and after the completion of the proceedings, the complaint must be lodged within three months of the date of the finding of action infringing the rights of the creditor, the natural person, the debtor's representative or a third party.
The Insolvency Control Service shall not examine complaints regarding decisions of the administrator based on a dispute regarding rights, or the rules governing insolvency shall provide for another procedure in which a complaint regarding the conduct and decisions of the administrator is to be lodged.
Upon receiving information regarding a potential administrative violation in relation to infringements in insolvency proceedings and legal protection proceedings, the Insolvency Control Service shall take a decision within three working days regarding:
- the initiation of an administrative infringement process;
- a refusal to initiate administrative infringement proceedings;
- transfer of materials according to the jurisdiction of the State Police for the assessment of a possible criminal offence.
Amount of the penalty
In the case of violation of the provisions of insolvency proceedings or legal protection proceedings, if committed by a person involved in insolvency proceedings or legal protection proceedings, the Insolvency Control Service is entitled to impose a fine of between 20 and 300 fine units (EUR 100 to 1500), while assessing the need to deprive the debtor representative of the right to take certain positions in commercial companies.
The Insolvency Control Service may initiate a disciplinary proceeding against the person supervising the legal protection process and the administrator regarding:
- a material violation of regulatory enactments;
- a material violation of the rules of professional ethics;
- systematic violations of regulatory enactments;
- abuse of powers;
- losses caused to the State, debtor or creditors if the amount of losses exceeds 20 minimum monthly salaries. The proposed case shall be examined by the Disciplinary Commission.
The insolvency control service shall perform an examination of the administrators of the insolvency proceedings by organising:
- An examination of applicants for insolvency proceedings shall not be less than once every two years. Upon appointment of the administrator, the Director of the Insolvency Control Service shall issue to the administrator his or her term of office, which shall be valid for two years.
- An examination of the qualification of the administrator of the insolvency proceedings shall not be less than three times a year. The director of the Insolvency Control Service, after receiving the assessments of the administrators, shall take a decision on the basis of the assessment provided by the commission regarding the extension of the term of validity of the administrator's position certificate or regarding the refusal to extend the term of validity of the administrator's position certificate.
The administrator examination and qualification examinations shall be organised in accordance with the dates specified by the examination commission.
The claims of employees shall be covered by the funds of the employee claims guarantee fund, the holder and manager of which shall be the Insolvency Control Service.
From the resources of the employee claims guarantee fund, the claims of employees shall be covered for a specified period:
- remuneration and remuneration for other paid absences for the last three months of the employment legal relationship during the 12 months preceding the occurrence of the employer's insolvency case (total not exceeding 92 calendar days);
- reimbursement of annual paid leave for which rights were acquired during the 12-month period prior to the occurrence of the employer's insolvency case (up to a maximum of 28 calendar days);
- severance payments for which rights were acquired not earlier than 12 months prior to the occurrence of the employer's insolvency case (30 calendar days).
When calculating the claims of employees to be paid from the employee claims guarantee fund, the maximum amount to be paid for each claim shall be attached to the minimum monthly salary of one and a half.
Prior to the filing of an application for insolvency proceedings, the court shall have a deposit contribution of the insolvency proceedings in the amount of two minimum monthly salaries in an account specially created by the Insolvency Control Service.
When submitting an application for insolvency proceedings, a document certifying the payment of the deposit for insolvency proceedings must be attached. The deposit shall be lodged in the insolvency proceedings of both legal and natural persons.
In the proceedings of a legal person, the purpose of the deposit is to cover the costs of the insolvency proceedings of the legal person. It shall be payable to the applicant, administrator or to the Treasury if it has a basis.
In the insolvency proceedings of a natural person, the deposit shall be used to cover the remuneration of the administrator if the insolvency proceedings are declared. If the insolvency proceedings are not declared, the deposit shall be payable to the debtor.