(position and competencies of administrator)
(1) The administrator shall be a body in insolvency proceedings, executing its competencies and tasks in such proceedings, stipulated by law, with the aim of protecting and realising the interests of creditors.
(2) In insolvency proceedings, the administrator shall conduct the operations of the insolvent debtor according to the needs of the procedure, and represent him:
1. in procedural and other legal actions in relation to testing claims, to rights to separate settlement and exclusion rights,
2. in procedural and other acts in relation to challenging the legal actions of the insolvent debtor,
3. in legal transactions and other acts necessary for the realisation of the bankruptcy estate ,
4. in realisation of the right to dispose of the claim and other rights acquired by an insolvent debtor as legal consequences of the initiation of bankruptcy proceedings and
5. in other legal transactions which the insolvent debtor may carry out pursuant to this Act.
Article 98
(obligations of administrator)
(1) The administrator shall perform his tasks and competencies in accordance with:
1. this Act and regulations issued on the basis thereof,
2. other acts which apply for an insolvent debtor, and regulations issued on the basis thereof,
3. the rules of the profession of persons who execute operations for other persons as mandataries.
(2) In performing his tasks and competencies, the administrator shall act:
1. conscientiously and fairly,
2. with a corresponding professional care, and
3. so as to protect and realise the interests of creditors, which shall be his lead in executing such tasks and competencies.
(3) The administrator shall treat creditors who are in an equal position vis-a-vis the insolvent debtor, equally and shall not enable or allow:
1. that individual creditors in the procedure achieve priority payment or other benefits to the detriment of other creditors who are in an equal position vis-a-vis the insolvent debtor, or
2. that other persons obtain the insolvent debtor’s assets which belong to the bankruptcy estate without providing for an equivalent counter exercise, or other benefits to the detriment of the bankruptcy estate which are not in accordance with the laws, regulations and rules of the profession referred to in the first paragraph of this Article.
Article 99
(regular reports of liquidator)
(1) The administrator shall prepare minutes on the conduct of the procedure for each calendar three-month period (hereinafter referred to as: regular report).
(2) Notwithstanding the first paragraph of this Article, the administrator shall prepare the first regular report:
1. if the period as of the initiation of the procedure until the end of the first calendar three-month period after the initiation of the procedure is shorter than one month: for the period as of the initiation of the procedure until the end of the second calendar three-month period after the initiation of the procedure,
2. in other cases: for the period as of the initiation of the procedure until the end of the first calendar three-month period after the initiation of the procedure.
(3) The administrator shall submit a regular report to the court in compulsory settlement proceedings within eight days, and in bankruptcy proceedings within forty-five days following the end of the period to which the report refers.Article 100
(extraordinary reports of administrator)
(1) The administrator shall, upon a request by the court or creditors’ committee, submit a written report on a certain matter significant for the conduct of the procedure, or protection, or realisation of interests of creditors in such procedure (hereinafter referred to as: extraordinary report), within eight days following the receipt of the request, unless a longer time limit for submission is determined in the request.
(2) The administrator may, within three working days, file an objection to the request of the creditors’ committee referred to in the first paragraph of this Article:
1. because the matter which is the subject of the report requested by the creditors’
committee is not significant for the conduct of the procedure, or protection or realisation of interests of creditors in such procedure,
2. because the time limit for the drawing up of the report is too short, considering the extent and complexity of the matter which is the subject of this report.
(3) The court shall decide on the objection of the administrator referred to in the second paragraph of this Article within three working days following the receipt of such objection.
(4) No appeal may be lodged against the decision of the court concerning the objection referred to in the second paragraph of this Article.
(5) Notwithstanding the first paragraph of this Article the administrator shall, in the event of an emergency case, immediately make an oral report to the court upon its
request, or draw up a report on an individual matter referred to in the first paragraph of this Article within three working days following the receipt of such request.
Article 101
(instructions of the court to the administrator)
(1) A presiding judge shall instruct the administrator on the work for which he is liable.
(2) The judge shall give the instructions in written form if so requested by the administrator.
Article 102
(liability of administrator)
(1) The administrator shall be liable to creditors for any damages incurred as a result of a violation of his obligations.
(2) The administrator shall be relieved of the liability if he proves:
1. that the creditor suffered damages due to incorrect or incomplete data provided in his lodgement of claims, or other acts or omissions originating on the part of the creditor,
2. that he has acted in compliance with the resolution or court order, or
3. that the damages occurred as a result of events or the actions of persons, the prevention, or avoidance or limitation of the detrimental consequences of which were beyond the administrator's capacity, although they acted with professional due diligence.
(3) The administrator shall not be relieved of liability for acting in accordance with the court's resolution or order if the creditor may prove that the issuance of such resolution or order has been achieved:
1. by providing the court intentionally or by gross negligence with incomplete or incorrect data, or
2. in any other unfair way.
(4) The administrator shall be liable to creditors for the damages referred to in the first paragraph of this Article, caused in an individual insolvency proceedings, up to the five times the amount of remuneration to which he is entitled from such procedure, but not less than EUR 5 000.
(5) The liability under the fourth paragraph of this Article shall not be limited if the performance or omission of the act has been done intentionally or by gross negligence.
Article 103
(remuneration of administrator)
(1) The administrator shall be entitled to remuneration for his work.
(2) In compulsory settlement proceedings, the remuneration of the administrator shall include:
1. compensation for testing claims,
2. compensation for drawing up a report on the results of voting concerning the adoption of compulsory settlement,
3. compensation for drawing up a report on subscription and the paying up of new shares, and
4. compensation for exercising the supervision of administrator under Article 171 of this Act.
(3) The compensations referred to in points 1, 2 and 3 of the second paragraph of this Act shall be determined in proportion to the number of claims lodged in due time, and the compensation referred to in point 4 of the second paragraph of this Article shall be determined in respect of each month of the duration of compulsory settlement proceedings.
(4) In bankruptcy proceedings the remuneration of the administrator shall include:
1. compensation for taking over the premises, assets and operations of the debtor in bankruptcy, and for elaboration of the opening report (hereinafter referred to as:
compensation for the elaboration of opening report) which is determined in proportion to the value of the assets, shown in the opening balance sheet of the debtor in bankruptcy referred to in the second paragraph of Article 291 of this Act,
2. compensation for testing claims which is determined in proportion to the number of claims lodged in due time, and
3. compensation for the realisation of the bankruptcy estate and distribution of the common or special bankruptcy estate which is determined in proportion to the level of the amount which is the subject of such distribution.
(5) If the administrator acts in the position of attorney and represents the debtor in bankruptcy in the court or other procedures conducted in relation to bankruptcy proceedings, the administrator shall also have the right to remuneration for representation, assessed accordingly to the attorney's price list, and related costs.
(6) In a court or any other procedure referred to in the fifth paragraph of this Article the debtor in bankruptcy shall be entitled to require a refund of remuneration and other costs referred to in the fifth paragraph of this Article under the rules concerning the refunding of the costs of proceedings.
(7) More detailed rules concerning the assessment of administrator's remuneration shall be determined by the tariff referred to in point 2 of Article 114 of this Act.
Article 104
(assessment and payment of administrator's remuneration)
(1) In compulsory settlement proceedings, the administrator shall obtain the right to require remuneration, when he has executed all acts and provided the court with the final report.
(2) In bankruptcy proceedings, the administrator shall obtain the right to require the payment:
1. of 90 per cent:
– of the compensation for the elaboration of the opening report: when submitting to the court the opening report pursuant to Article 294 of this Act,
– of the compensation for testing claims: when submitting to the court the final list of the tested claims pursuant to Article 70 of this Act,
– of the proportional part of the compensation referred to in point 3 of the fourth paragraph of Article 103 of this Act: when submitting to the court the final distribution plan,
2. of 10 per cent of all compensations: when submitting to the court his final report pursuant to Article 375 of this Act.
(3) If the administrator is dismissed due to a breach of his obligations, he shall not be entitled to a remuneration.
(4) If the administrator is dismissed upon his own request, he shall be entitled to a part of remuneration, proportionate to the extent of the acts executed before his dismissal, decreased by a flat-rate allowance for taking over the operations of a dismissed administrator, which shall be, under the fifth paragraph of this Article, paid to the new administrator.
(5) The administrator appointed during the dismissal procedure of the previous administrator, shall have the right to:
1. flat-rate compensation for taking-over operations from the dismissed administrator, and
2. part of remuneration proportionate to the extent of the acts executed from the taking-over operations from the previous administrator until the conclusion of the procedure.
(6) The assessment of compensations included in the remuneration, and the flat-rate compensation, shall be decided by the court upon the request of the administrator.
(7) The court shall decide on the assessment of compensations included in the remuneration, and the flat-rate compensation within eight days following the receipt of the administrator’s request.
(8) The remuneration and the flat-rate compensation shall be paid as a cost of procedure after the resolution on the assessment referred to in the seventh paragraph of this Article becomes final.
(9) The administrator may also appeal against a resolution on the assessment of compensations included in the remuneration and the flat-rate compensation.
(10) An appeal against a resolution concerning the assessment of compensations included in the remuneration and the flat-rate compensation, shall restrain the implementation of the resolution.
Article 105
(administrator’s costs)
(1) The administrator shall have the right to compensation for costs incurred during the performance of the tasks and competencies of administrator.
(2) Compensation of costs to the administrator incurred in an individual month shall be decided by the court issuing a resolution with which it decides on the payment of other current costs of the procedure for such month.
(3) An appeal against a resolution on the compensation of costs to the administrator shall, mutatis mutandis, be subject to the ninth and tenth paragraphs of Article 104 of this Act.
Subsection 3.6.2: Supervision of administrators