New rules – random checks of estates in bankruptcy
23 February 2016
On 12 February 2016 the Danish Ministry of Justice passed the Executive Order on Supervision of estates in bankruptcy.
The Executive Order largely establishes the already current legal position on how the funds of an estate in bankruptcy are to be managed by a trustee.
It is new that the Executive Order enables Danish bankruptcy courts to make estates subject to random checks. The purpose of such checks is to ensure that the funds of the estate exist and that the funds are being managed and administered in accordance with the rules of the Executive Order.
The bankruptcy court may carry out the check at the offices of the trustee or may order the trustee to appear before the bankruptcy court and bring the documents relating to the estate, and the trustee is to provide the bankruptcy court with any information regarding the situation of the estate that the bankruptcy court may request in connection with the check.
The Executive Order comes into force on 1 March 2016.
Read the Executive Order (in Danish) "Bekendtgørelse om tilsyn med konkursboer"
