Thу appointment of a bankruptcy administrator for a company

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(continued from last issue)

In addition, the Law on Enterprise Bankruptcy provides that the petitioner or other parties entitled to provide a bankruptcy petition have only the right to suggest the bankruptcy administrator for the enterprise. It should be noted that the Law on Enterprise Bankruptcy does not provide any preferential right for any bankruptcy administrator suggested by the petitioner of other parties entitled to provide bankruptcy petition to be authorized by the court for the bankruptcy administrator for the enterprise. So the court is unhampered by the suggestion of the candidacy of bankruptcy administrator and the court is not obliged to appoint the bankruptcy administrator who was suggested by the petitioner or other parties entitled to provide the bankruptcy petition.

It should be noted that the decision to appoint the bankruptcy administrator could be disputed if the bankruptcy administrator does not fill the requirements indicated in Article 11 of the Law on Enterprise Bankruptcy, or when it comes to the conclusion that the appointed bankruptcy administrator can’t fulfill the obligation indicated in the Law on Enterprise Bankruptcy and cannot represent the interest of the creditors or failing enterprise because of subjective or objective reasons.

The Law on Enterprise Bankruptcy also regulates the discharge of the bankruptcy administrator. The discharge of the bankruptcy administrator is possible only through a court ruling. Under Article 23 Point 13 of the Law on Enterprise Bankruptcy the meeting of creditors has a right to lay the claim to the court regarding the discharge of the bankruptcy administrator. It should be noted that the court has a right on one’s own account to discharge the bankruptcy administrator. Also, the bankruptcy administrator has the right to put in an application to thecourt for resignation.