Bestuursverbod

A director disqualification order is a civil measure whereby a court prohibits a natural person from acting as a director or supervisory director of a legal entity for a specified period, generally not exceeding five years. This sanction may be imposed in cases of serious managerial failings, such as causing a bankruptcy through improper management or breaching statutory obligations.

The measure is set out in Article 2:106a of the Dutch Civil Code and is intended to maintain confidence in commercial dealings. It may be ordered both on the application of the Public Prosecution Service and in the context of bankruptcy proceedings, and applies to all legal entities, irrespective of whether the individual concerned acts in an employed capacity.

In practice, a director disqualification order is regularly imposed in bankruptcies involving fraudulent conduct or gross negligence. The prohibition has immediate effect on the individual concerned, who may not accept any new directorships during the disqualification period and must relinquish any existing positions.