What are the liabilities of directors for wrongful or insolvent trading restrictions? | 21 September 2023

Criminal liability may also result if it is shown that this prohibition was knowingly violated

Author

Alburo Law
September 21, 2023

What are the liabilities of directors for wrongful or insolvent trading restrictions?

Directors and officers of a debtor will be liable for double the value of the property sold, embezzled or disposed of or double the amount of the transaction involved, whichever is higher to be recovered for the benefit of the debtor and the creditors, if they willfully commit the following acts:

Dispose or cause to be disposed of any property of the debtor other than in the ordinary course of business, or authorize or approve any transaction in fraud of creditors or in a manner grossly disadvantageous to the debtor and/or creditor

Conceal or authorize or approve the concealment, from the creditors, or embezzle or misappropriate, any property of the debtor

(Section 10, Financial Rehabilitation and Insolvency Act (FRIA) of 2010)

DON’T MISS OUT!

Alburo Law's certification training is now on it's 6TH RUN!

PROFESSIONALS, HR PRACTITIONERS, AND ENTHUSIASTS, this is your chance to further strengthen your career, add to your solid credentials — that will surely be looked favorably by fellow HR practitioners and employers alike, plus the opportunity to reach your workplace and organizational success.

Learn everything you need to know about Labor Law. Enroll in Alburo Law's 2-day onsite Labor Law Certification Program.

Why choose ALBURO LAW?

Alburo Alburo & Associates Law Offices:

• Have labor law and business law as our main fields of practice. For almost a decade now, we have been helping businesses improve their productivity and profitability by helping them comply with relevant laws, rules, and regulations.

• Observe high standards of excellence.

• Always consider innovative approaches to effectively address the legal concerns of our clients, covering a wide range of industries such as food, manufacturing, chemicals, real estate, retail and wholesale trade, and services in fields such as information technology, human resources, security, training, process outsourcing and other manpower services, among many others.

• October 25-26, 2023 (Wed-Thurs) | 9am-4pm | ₱2,888.00 •

~~~ REGISTER NOW: bit.ly/6thLaborLawCertification~~~

Open to new and experienced HR professionals. Topics to be covered include labor standards and labor relations laws, special DOLE rules, and relevant Supreme Court decisions.

Contact us: 09778050020 | 09778050015 | (02) 7745-4391