At Sundgaard, we have extensive experience with all aspects of insolvency, bankruptcy and financial distress. We are qualified to help you or your business manage any financial challenges.
Pursuant to the rules of the Danish Bankruptcy Act, a trustee in a bankruptcy estate must make an assessment of whether the management has been grossly irresponsible in its business conduct. Based on this assessment the trustee may recommend initiating a disqualification process against the management. The recommendation is sent to the Bankruptcy Court, which also is the right forum for litigation.
Should management by presented with disqualification proceedings, management can ask to be appointed counsel. The management can choose its counsel, who is then appointed by the court.
If management is disqualified, the initial costs are covered by the state. However, the state will ultimately claim the costs with the management personally.
The consequence of disqualification is that management is banned from managing limited liability business’ in up to three years.
We litigate matters on both sides and have extensive experience with disqualification proceedings.