Article 280 of Bankruptcy Law

If a final judgment declaring a company bankrupt is issued, the members of its board of directors, its managers and its liquidators shall be punished by imprisonment for a term not exceeding three years and a fine not exceeding one hundred thousand dinars, or by either of these two penalties, if they commit any of the following acts: 1. Determining excessive remuneration for members of the board of directors, the chief executive officer and managers during the three years preceding the company’s cessation of payment, where that was one of the causes of the cessation. 2. Failure to keep commercial books sufficient to ascertain the company’s true financial position, or failure to carry out the inventory required by law. 3. Refraining from submitting the data requested by the Bankruptcy Judge, the trustee, the Bankruptcy Court or the Court of Appeal, or deliberately submitting incorrect data. 4. Disposing of the company’s assets after its cessation of payment, where this was intended to remove Law Index 1453 Home Page Bankruptcy Law Law No. 71 of 2020 Promulgating the Bankruptcy Law these assets from the creditors. h. Paying any indebtedness contrary to the terms of the preventive settlement proposal or the ratified restructuring plan, or disposing of any assets contrary to what is stated in the proposal or plan. 6 . Paying, after the company’s cessation of payment, a debt to one creditor to the detriment of the others, or granting security or special advantages to one creditor in preference to the others, even if this was intended to obtain the approval of the required majority for a preventive settlement proposal, a restructuring plan or terms of composition. . Disposing of the company’s goods or any of its assets or rights at less than their price a or their market value by a noticeable difference not customarily tolerated, with the intention of delaying the company’s cessation of payment or declaration of bankruptcy, or delaying the rescission of a preventive settlement proposal, a restructuring plan or terms of composition, or resorting, to achieve this purpose, to unlawful means to obtain money. . Spending substantial sums on fictitious speculation other than what is required by the company’s commercial business.