Fraudulent Bankruptcy: Analysis of Supreme Court Ruling No. 13423/2022

Supreme Court Ruling No. 13423/2022 provides an important reflection on the criminal liability of directors in cases of fraudulent documentary bankruptcy. The Court upheld the conviction of C. R., holding him responsible for the poor maintenance of his company's accounting records, which was subsequently declared bankrupt. This decision is part of a legal framework where compliance with accounting obligations is crucial to ensure transparency and legality in business activities.

The Case of C. R. and the Lack of Accounting Documents

The Court of Appeal of Brescia had initially convicted C. R. of fraudulent documentary bankruptcy, subsequently reducing the accessory penalties. However, the appellant raised several issues, arguing that the Court had not adequately considered the evidence presented, particularly the report from the bankruptcy trustee which highlighted the need for further investigations.

• Clear responsibility of directors in maintaining accounting records.
• Importance of accounting documentation for reconstructing company assets.
• Distinction between fraudulent and simple bankruptcy concerning the subjective element.

The failure to deliver accounting documentation to the trustee prevents the reconstruction of assets, constituting the crime of fraudulent bankruptcy.

Elements of Liability and Intent

The Court reiterated that to establish the crime of fraudulent documentary bankruptcy, general intent is required, meaning the awareness that poor accounting practices can make it impossible to reconstruct the company's affairs. This aspect is crucial, as it emphasizes that directors cannot completely delegate accounting management to third parties, such as an accountant, without retaining individual responsibility.

In particular, the Court observed that C. R. had regularly maintained the accounts until 2007, and then omitted any updates from 2008, close to the company's bankruptcy. This conduct was interpreted as a deliberate intention to obscure the company's true economic performance.

Conclusions: The Need for Greater Vigilance

Supreme Court Ruling No. 13423/2022 serves as a clear warning to all company directors, highlighting the importance of proper maintenance of accounting records and transparency in business operations. Criminal liability for fraudulent bankruptcy must not be underestimated, and directors must be aware that delegating to external professionals does not exempt them from their legal obligations.

In a context of increasing focus on legality and social responsibility, it is essential for entrepreneurs to adopt sound and transparent governance practices to avoid criminal sanctions and preserve the trust of their stakeholders.