Note: Abuse of rights in filing own bankruptcy?
Date: Sept. 10, 2018
Modified November 14, 2023
Written by: Erik Jansen
Reading time: +/- 2 minutes
Date: Sept. 10, 2018
Modified November 14, 2023
Written by: Erik Jansen
Reading time: +/- 2 minutes
As a director of a legal entity, after the shareholders' meeting decides to do so, you can file for a company's own bankruptcy because there are debts that cannot be paid and you do not want to make the situation worse. "Muddling through" against one's better judgment can also carry risks. The Rotterdam District Court rejected a request to file for its own bankruptcy because there would no longer be any recoverable assets in the legal entity. In such a case, instead of filing for its own bankruptcy, the path of (turbo) liquidation should be followed.
In his note under this ruling in the well-known journal JOR (Jurisprudentie Onderneming & Recht), our office colleague Erik Jansen gives his critical opinion on this ruling.
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