The Liability of the Managing Body within the Insolvency Proceedings in Romania: Case-Law Study

The study aims at identifying the new elements that the Insolvency Code in Romania, Law 85 of 2014, brings in what concerns entailing the liability of the managing body as well as that of other persons having contributed to the debtor’s state of insolvency, compared to the previous regulation provided by Law 85 of 2006. The identification of these elements is carried out by making reference to the types of deeds that, following taken legal action, can entail liability and the coverage of the debts by the members of the managing body as well as by other persons having contributed to the debtor’s state of insolvency. The analysis of the deeds concentrates around two connected centers of interest: The analysis of the deeds such as they are regulated by the two regulations and the case where for certain deeds there need to be identified the elements of repeatability in the two regulations and then the relevant case-law applicable for the respective deed is analyzed. In conclusion, in this way are identified the case-law variations met by the regulations applicable to the respective deed, in the judgments grounded on Law 85 of 2006. These variations represent landmarks for the regulations comprised by the Romanian Insolvency Code – Law 85 of 2014. Following the analyzed legal precedents – a number of 30 case-law judgments issued by courts of appeal being at the highest level of jurisdiction, there are identified in concreto, the type of acts which may entail the liability of the managing body for the insolvency of the enterprise. Through the present study we aim to guide the local administrators, as well as the future foreign investors who engage in foreign direct investments (FDI) in Romania with regard to the liability of the managing body in within the insolvency proceedings.