With effect from 1 July 2016, a receiver and the Public Prosecution Service can demand a director disqualification in respect of directors of legal entities involved in insolvency fraud or directors who have been guilty of mismanagement in the run-up to a liquidation.
This is provided for in Sections 106a to 106e inclusive of the Dutch Bankruptcy Act. Former directors and actual policymakers are also included in the scope of the provisions. The court can prohibit these directors from being a director or supervisory director of a legal entity or from representing it for a maximum of five years. This way, it is possible to prevent that fraudulent directors continue their activities unhindered with new or other legal entities, and to prevent that trade is affected any further (in any event temporarily).