Article 68 of the Dutch Bankruptcy Act (Faillissementswet) defines the task of the bankruptcy trustee (curator): the management (beheer) and liquidation (vereffening) of the bankrupt estate. The trustee is appointed by the court in the bankruptcy order and acts under the supervision of the supervisory judge (rechter-commissaris), in the interest of the joint creditors.
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What does a bankruptcy trustee do?
The trustee takes control of the bankrupt’s assets, decides whether to continue or end contracts, sells assets and distributes the proceeds to creditors according to their ranking. He also investigates the causes of the bankruptcy and possible irregularities, such as payments that harmed creditors or improper management. The trustee reports on this in public reports, generally every three months (Article 73a Bankruptcy Act).
Whose interests does the trustee serve?
Primarily those of the creditors as a group, not of a single creditor and not of the bankrupt company or its directors. The trustee must also take social interests into account, such as employment. For important steps, including litigation and a private sale of assets, he needs the permission of the supervisory judge.
What does this mean for directors?
The trustee is not a neutral administrator. He reviews the company’s accounts, decisions and payments and may claim damages from directors, for example under Article 2:248 Dutch Civil Code. Directors must provide all information and hand over the books when asked (Article 105 and following Bankruptcy Act). Conversations with the trustee can therefore have legal consequences.
What does this mean for creditors?
Creditors must file their claims with the trustee and provide supporting documents. Secured creditors and suppliers with retention of title should contact the trustee quickly. In a restart (doorstart), the trustee negotiates the sale of the business, and the creditors’ interest remains the guiding principle.
Frequently asked questions
Can I challenge a decision of the trustee?
Yes. Any creditor or the bankrupt can ask the supervisory judge to order the trustee to take or refrain from an action (Article 69 Bankruptcy Act).
Who pays the trustee?
The trustee’s fee is paid from the estate, as approved by the court.
Related terms
- Bankruptcy
- Article 2:248 Dutch Civil Code (director liability in bankruptcy)
- Article 42 Dutch Bankruptcy Act (bankruptcy pauliana)
- Article 37 Dutch Bankruptcy Act (reciprocal contracts in bankruptcy)
Our corporate lawyers represent directors, shareholders and creditors in their dealings with bankruptcy trustees. Want to know what this means for your situation? Book a free introductory meeting.
