A close person to the debtor in insolvency proceedings

A close person to the debtor in insolvency proceedings

In April this year the Supreme Court of the Czech Republic issued decision No. 29 ICdo 80/2014 in which it dealt with the issue of close person to the legal entity in insolvency proceedings and the issue of ineffective juridical acts.

The Supreme Court expressly stated that the fact itself that an executive director of a limited liability company is a spouse of an executive director of another limited liability company does not make the companies legally connected. The Supreme Court confirmed there is no reason to modify such conclusion for the needs of insolvency law in, even taking into account the fundamental principles of insolvency proceedings.