In the event that a final judgment is issued declaring the bankruptcy of a company, the members of its Board of Directors, managers and liquidators shall be punished with imprisonment and / or a fine not exceeding five hundred thousand UAE dirhams (AED 500,000), if they commit any of the following actions: 1. Determine exorbitant remuneration for members of the Board of Directors, the CEO and managers during the three (3) years preceding the company's cessation of payment, and the same was one of the reasons for the cessation. 2. Failure to maintain commercial books sufficient to determine the true financial position of the company or failure to carry out the inventory required in accordance with the law. 3. Refrain from submitting the data requested by the trustee, the Bankruptcy Court or the Court of Appeal or deliberately provide incorrect data. 4. Dispose of its goods or any of its assets after the cessation of payment, if the same is intended for concealing these assets from creditors. 5. Pay any debt in a manner contrary to the terms of the preventive settlement proposal or the approved plan or Dispose of any assets in a manner contrary to the terms stated in the proposal or plan. 6. Pay, subsequent to the cessation of the payment, a debt to any of the creditors to the detriment of the rest or provide a guarantee or special benefits to any of the creditors in preference to the rest, even if the same is made with the intention of obtaining the approval of the required majority on a preventive settlement proposal, plan or composition terms. 7. Dispose of the company's goods or any of its assets or rights at a significantly lower price or market value, in a manner not tolerated based on the customary practices, with the intention of delaying the company's cessation of payment or declaration of its bankruptcy, delaying the rescission of the preventive settlement proposal, plan or the composition terms, or, for this purpose, resorting to illegal means to obtain sums of money. 8. Spend huge sums of money on fictitious speculation in matters other than the activities required for the company's business.
Interpretation and application must be checked against the official text and current version.