Insolvency Trustee - conditions for obtaining the licence and application requirements

1. 5. 2014 | Source: Point of Single Contact (PSC) Czech Republic

The document sets forth conditions and further information applying to the activity of an insolvency trustee or guest insolvency trustee, supplements to the application and further information on approval process in order to conduct activities of an insolvency trustee.

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Conditions for granting a licence

Conditions for awarding the authorisation to individual applicants (natural persons)full legal capacity

  • full legal capacity
  • has obtained or been awarded a Master’s degree at university in a Member State or the education was recognized by the member state
  • has passed an insolvency trustee exam or differential insolvency trustee exam (for attorneys, tax consultants, auditors and notaries)
  • has provided payment to the ministry of the administrative fee for inclusion onto the list amounting to CZK 5,000 andhas taken out, at their own expense, a damage liability insurance policy
  • is a person of probity

An individual shall not be considered a person of probity

  • who has been found guilty of a deliberate criminal offence committed in association with their pursuit of the office of insolvency trustee, or any other deliberate criminal offence involving finance
  • who has had their request for remission of remaining debt rejected by the court at any time during the last five years prior to the submission of their proposal
  • who is subject to insolvency proceedings involving their bankruptcy or pending bankruptcy
  • who, during the last 3 years, has been a statutory body or member thereof of a legal entity currently the subject of insolvency proceedings in connection with its bankruptcy or pending bankruptcy
  • who is presently prevented from exercising the office of a statutory body, or from being a member of a statutory body or other body of a commercial legal entity
  • who, during the five years prior to submission of their proposal, was deprived of their authorisation (since, despite a written warning issued by the Ministry of Justice, they repeatedly or materially breached their statutory obligations governing the pursuit of the activity of insolvency trustee)

Conditions for awarding special authorisation to individual applicants

In addition to the conditions above

  • has passed a special insolvency trustee exam, or where the individual concerned has had their professional qualification acknowledged by the ministry pursuant to the Insolvency Act
  • no more than 5 years have lapsed since they took the special insolvency trustee exam

Conditions for awarding authorisation to applicants that are public companies and foreign companies

  • has (a) notified associate/associates who comprise the statutory body or membership of the same and who shall undertake the activity of an insolvency trustee
  • declaration by the notified associate to the effect they will continue to perform the activity of insolvency trustee only as part of a public company
  • has taken out, at its own expense, a damage liability insurance policy

Conditions for awarding authorisation for so-called guest insolvency trustee; individual applicants

  • submission of a certified copy of the letter of appointment or equivalent certificate issued by the relevant Member State body to the effect that the applicant performs the respective activity in the Member State concerned in accordance with the regulations of the said Member State
  • documentary proof of a valid damage liability insurance policy
  • mailing address in the territory of the Czech Republic
  • stating the expected length of time the insolvency trustee intends to pursue their activity

Conditions for awarding special authorisation as a guest insolvency trustee to individual applicants

In addition to the conditions above

  • submission of documentary proof of having passed a special insolvency trustee exam or submission of a certified copy of appointment of the person concerned, or equivalent certificate, issued by the relevant body of the Member State involved, documenting that the guest insolvency trustee pursues the activity of insolvency trustee for a debtor that is a financial institution liable to a special regime, or a securities trader, depository, operator of a settlement system, organiser of an investment instruments market, an investment company, an investment fund or a pension fund, in accordance with the regulations of the said Member State

Instead of taking a special insolvency trustee exam, a guest insolvency trustee may have their professional eligibility acknowledged pursuant to Act No. 18/2004 Coll., on the recognition of professional qualification.

Conditions for awarding special authorisation to applicants who are public companies or foreign companies

  • the appropriate authorisation has been issued to their notified associate, or they have had their professional eligibility acknowledged pursuant to the Insolvency Act

Application requirements

  • Written form
  • Czech language

Proposals submitted by individuals must contain:

  • identification data on the individual concerned and documentary proof that the academic conditions have been met, that the insolvency trustee exam or differential insolvency trustee exam has been passed, as well as an extract from the Criminal Register or equivalent document issued by the states in which the individual has been resident at any time during the last three years, for three consecutive months or longer, where the said document must not be older than 90 days.
  • in the case of a lawyer, tax consultant or auditor, a confirmation by the relevant chamber to the effect that the person has been included onto the relevant list, and in the case of a notary, a document on their appointment as a notary.
  • The proposal from an individual to be awarded special authorisation must further be accompanied by a document attesting that the requirement to have passed a special insolvency trustee exam has been met.

Proposals submitted by individuals as guest insolvency trustees must contain:

  • identification data on the individual concerned and documentary proof that the academic conditions have been met, that the insolvency trustee exam or differential insolvency trustee exam has been passed, as well as an extract from the Criminal Register or equivalent document issued by the states in which the individual has been resident at any time during the last three years, for three consecutive months or longer, where the said document must not be older than 90 days

Also accompanying the proposal to be awarded authorisation as a special guest insolvency trustee must be documentary proof of having passed a special insolvency trustee exam, or a certified copy of the appointment of the person concerned, or equivalent certificate issued by the relevant body of the Member State involved, documenting that the guest insolvency trustee pursues the activity of insolvency trustee for a debtor that is a financial institution liable to a special regime, or a securities trader, depository, operator of a settlement system, organiser of an investment instruments market, an investment company, an investment fund or a pension fund, in accordance with the regulations of the said Member State. (Instead of taking a special insolvency trustee exam, a guest insolvency trustee may have their professional eligibility acknowledged pursuant to Act No. 18/2004 Coll., on the recognition of professional qualification).

Proposals submitted by public companies or foreign companies must contain:

  • data on the company, registered address, identification number and data on the person that is the statutory body or a member of the statutory body through which the activity of an insolvency trustee will be performed and identification data on all associates
  • proposals from a public company or foreign company to be awarded special authorisation must further be accompanied by documentary proof to the effect that their notified associate has passed a special insolvency trustee exam

Requirements connected to the provision of services by a provider from a different Member State

Conditions for awarding authorisation for so-called guest insolvency trustees to applicants who are foreign companies

  • submission of a certified copy of the letter of appointment or equivalent certificate issued by the relevant Member State body to the effect that the applicant performs the respective activity in the Member State concerned in accordance with the regulations of the said Member State
  • identification of the associates who will perform the insolvency trustee activities
  • declaration by the notified associate to the effect they will continue performing the activity of an insolvency trustee only as part of the foreign company
  • documentary proof of a valid damage liability insurance policy
  • mailing address in the territory of the Czech Republic
  • stating the expected length of time the insolvency trustee intends to pursue their activity

A guest insolvency trustee is a national of an EU Member State, a member state of the EEA Treaty or the Confederation of Switzerland, who performs the activities of an insolvency trustee in another Member State and intends to perform the office of insolvency trustee in the territory of the Czech Republic on a temporary or occasional basis and who is authorised to carry out the activities of an insolvency trustee.

No additional conditions are specified for foreign nationals.

Further information on the licence proceedings

Type of licence

1. a permit to carry out the activities of an insolvency trustee
or
2. a permit for a guest insolvency trustee to carry out the activities of an insolvency trustee

Respective authority

  • Ministry of Justice

Control and supervisory bodies

  • Ministry of Justice

Procedure for granting a licence

  • The applicant shall submit a written request to the Ministry of Justice. The Ministry of Justice shall issue the permit and include the applicant onto the list. Proceedings shall be governed by the Insolvency Trustee Act.

Application clearing deadline

  • No statutory time limit is specified. The Ministry of Justice shall issue an insolvency trustee authorisation, with no undue delay, to any person who meets the conditions specified, and shall enter the person into the Register of Insolvency Trustees.

Fees

  • Administrative fee of CZK 5,000 for inclusion onto the list.

Validity period of licence

  • Unlimited for insolvency trustees.
  • Limited for guest insolvency trustees in cases where the validity period of the certificate of a guest insolvency trustee issued by the competent body of the Member State concerned is limited.

Combined proceedings (recognising qualifications and granting authorisation)

  • Yes. The Ministry of Justice shall issue an authorisation to a guest insolvency trustee with no undue delay upon acknowledgement of the applicant’s appointment or equivalent certificate issued in their country of origin

Current Community regulations

  • Act No. 182/2006 Coll., on insolvency and its resolution (Insolvency Act)
  • Decree No. 313/2007 Coll., on fees for insolvency trustees, on reimbursement of cash expenses and reimbursement of members and deputy members of creditor committees and reimbursement of their necessary expenses
  • Decree No. 311/2007 Coll., on standing rules governing the insolvency proceeding and on implementation of some other provisions of the Insolvency Act
  • Decree No. 314/2007 Coll., on the minimum insurance limit and minimum standards for insurance contracts of insolvency trustees
  • Act No. 66/1963 Coll. Civil Code of Procedure

Current Community regulations

  • Act No. 66/1963 Coll. Civil Code of Procedure Council Regulation (EC) 1346/2000 of 29 May 2000 on insolvency proceedings

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