On criminalization of illegal actions in case of insolvency or bankruptcy

Abstract

The paper examines the feasibility of criminalizing illegal actions in the event of insolvency or bankruptcy. In the scientific literature, attention is drawn to the impracticality of decriminalization of a number of criminal law norms in 2012, in particular, Art. 221 of the Criminal Code of Ukraine, which provided for liability for illegal actions in the event of bankruptcy. The regulatory legislation provides for property disposal, rehabilitation and restructuring procedures, which are carried out in the event of the debtor's insolvency, as well as procedures for the liquidation and repayment of the debtor's debts, which begin after the commercial court adopts a resolution declaring the debtor bankrupt. Accordingly, illegal actions can be committed in the event of the debtor's insolvency or bankruptcy. The arbitration manager, who is appointed as a property administrator, rehabilitation manager or liquidator, is equated to an official of a business entity. The public danger of illegal actions in the event of insolvency or bankruptcy is that they cause material losses to creditors, violating the established procedure for meeting the demands of creditors during the procedure of property disposal, remediation, liquidation, restructuring or debt repayment for the debtor. In addition, illegal actions that violate the established procedure for satisfying creditors' claims in the event of insolvency or bankruptcy are also intentional concealment of property information and falsification of rehabilitation or restructuring plans. Therefore, we consider it necessary to supplement the Criminal Code of Ukraine with a rule that will protect creditors' claims against illegal actions in the event of insolvency or bankruptcy. Punishment for illegal actions in the event of insolvency or bankruptcy, if they have caused great material damage, shall be established within the framework of the classification of criminal offenses, which is defined for a minor crime.