Bankruptcy in itself is not a crime in the UAE. A debtor who is unable to pay his debts commits no crime and the Law only provides for certain procedures to be followed in respect of determining and extinguishing his debts. However, the Penal Code does specify certain instances where a trader will be charged for committing a bankruptcy offence that amounts to a crime.
Under the Penal Code, a trader will either be regarded as bankrupt by default or bankrupt by misrepresentation if he/she:
· Conceals, mutilates, falsifies or destroys of his books.
· Falsifies entry in any book or document for any artificial debts.
· Spends on gambling or materially contributes to or increases the extent of insolvency by rash hazardous speculations.
· Payment of debts to some creditors with intent to defend or delay other creditors.
· Failing to keep proper books of account or failing to produce all the books of accounts as are necessary to demonstrate or explain his debts or credits.
No comments:
Post a Comment