Administrative regulation of disciplinary liability of bankruptcy trustees

Abstract

This article investigates the specificities of disciplinary responsibility borne by bankruptcy trustees in Ukraine, a matter characterized by considerable complexity stemming from the unique attributes of their legal status. Beyond the inherent private law nature of their activities, the role of bankruptcy trustees is encumbered by an administrative-public dimension. This dimension is predicated upon the acquisition of the right to engage in professional practice through a duly authorized state agency – the Ministry of Justice of Ukraine – and the procedural appointment within bankruptcy (insolvency) proceedings by the commercial court. Consequently, while not classified as civil servants, judicial officers, or representatives of creditors and debtors within the judicial framework of bankruptcy procedures, bankruptcy trustees in Ukraine are endowed with the authority for external administration, supervision, and management concerning the economic operations of debtors. Furthermore, they are mandated to ensure the most comprehensive and proportionate satisfaction of creditors' claims.

The article establishes that the specificities of control over the activities of bankruptcy trustees in Ukraine are determined by the increasing role of the institution of bankruptcy in the economy and the necessity of ensuring the legality and effectiveness of debt solvency restoration or debtor liquidation procedures. The article establishes that the specificities of control over the activities of bankruptcy trustees in Ukraine are determined by the increasing role of the institution of bankruptcy in the economy and the necessity of ensuring the legality and effectiveness of debt solvency restoration or debtor liquidation procedures. The bankruptcy trustee is a key figure in these procedures, vested with significant powers and responsibilities. Improper performance of their duties can lead to the violation of the rights of creditors, debtors, and other participants in the bankruptcy proceedings, as well as undermine trust in the entire system.

In this regard, effective control over the activities of bankruptcy trustees is extremely important. The control system in Ukraine includes various levels and bodies, among which a special place is occupied by administrative control carried out by the Ministry of Justice of Ukraine, and judicial control implemented by commercial courts within the framework of bankruptcy cases.