Documentary Fraudulent Bankruptcy: Commentary on Judgment No. 39160 of 2024

The recent judgment No. 39160 of October 4, 2024, filed on October 25, 2024, offers significant insights into documentary fraudulent bankruptcy, an offense that highlights the responsibilities of directors in managing a company's accounting records. The Court of Cassation, addressing the case of a change in company management, reiterated the importance of control over accounting documentation and the legal consequences in case of irregularities.

Obligations of the New Director

In the grounds of the judgment, the Court established that the new director has the obligation to:

• Verify the correct keeping of accounting records by the predecessor;
• Reconstruct missing or inadequate documentation;
• Restore missing books and accounting records;
• Rectify any erroneous, incomplete, or false entries.

Documentary fraudulent bankruptcy - Change in company management - Failure to find accounting records - Obligations of the new director - Indication. In the context of documentary fraudulent bankruptcy, in the event of a change in company management, the new director is obliged to verify the actual and correct keeping of accounting records by the predecessor, as well as to reconstruct any missing or inadequate documentation, to restore missing books and accounting records, and to rectify erroneous, incomplete, or false entries. (In its reasoning, the Court affirmed that, in any case, the outgoing director remains responsible for keeping the accounts for the period in which they held office and for any concealment, in whole or in part, of the documentation at the time of handover).

Responsibilities and Legal Consequences

A crucial aspect emerging from the judgment is that, despite the change in administration, responsibility for keeping the accounts remains with the outgoing director for the period they held office. This implies that, in case of dispute, both directors could be held liable for any irregularities. This principle is based on Article 216 of the Bankruptcy Law, which clearly outlines responsibilities in cases of fraudulent bankruptcy.

Conclusions

Judgment No. 39160 of 2024 represents an important confirmation of the responsibilities related to accounting management in the corporate sphere. Directors must be aware of their legal obligations and the consequences of non-compliance. The correct keeping of accounting records is not only a regulatory obligation but also a guarantee for the transparency and regularity of business management.