LEX Africa 30th anniversary logo
Africa Update

Firm Details

No data was found

Mozambique: Penal Code vs Insolvency Law

Section I of Chapter II, Title II of the Penal Code, approved by Law no.35/2014, of 31st of December (“PC”) is dedicated to “bankruptcies, fraud and other frauds”.

Paragraph 1 of art.. 295º, of the PC establishes that “[t]hose who, in cases set out by the Commercial Code, are considered to be perpetrators of the crime of fraudulent bankruptcy or insolvency, shall be punished with a penalty of two to eight years of long term imprisonment.”

On the other hand, art. 297º also of the PC establishes that “[a]ny debtor which is a non-commercial entrepreneur, who constitutes himself, as insolvent by hiding or maliciously alienate/dispose of his assets, shall be punished with a sentence of three months to two years of imprisonment.”

However, since the entry into force of Decree-Law No. 1/2013, of 4 July – which approved the legal framework for insolvency and commercial business recovery (“Insolvency Law“) –the Insolvency institute is applicable to both commercial and non-commercial entrepreneurs, and the bankruptcy institute ceased to be regulated in our legal system.

Also, and contrary to what seems to result from paragraph 1 of art. 295º of the PC, the Commercial Code does not make any reference to crimes/offences of fraudulent bankruptcy insolvency, nor does it refer to whom should be considered as perpetrators of such crimes.

How arts. 295º to 297º of the PC should be dealt with? Is it that they have no practical applicability and the crimes dealt therein should not be considered?

 

Article written by: Rita Donato and Telmo Ferreira of our member firm Couto, Graca & Associados

 

en_ZAEnglish

Member Countries

Explore our member firms by country

Algeria
Angola
Botswana
Burkina Faso
Cameroon
DRC
Egypt
Equatorial Guinea
Eswatini
Ethiopia
Ghana
Guinea Conakry
Ivory Coast
Kenya
Lesotho
Malawi
Mali
Mauritius
Morocco
Mozambique
Namibia
Nigeria
Rwanda
Senegal
South Africa
Tanzania
Tunisia
Uganda
Zambia
Zimbabwe

What We Do

Explore our range of expertise, and see how we can help you.
Banking & Finance, Investment Funds & Private Equity
Business Crimes & Investigations
Competition/Antitrust
Construction & Engineering
Corporate Mergers & Acquisitions
Cyber Law, Block chain & Technology
Dispute Resolution
General Business Law
Healthcare and Life Sciences
Infrastructure, Energy & Projects
Insolvency & Business Restructuring
Intellectual Property
Labour & Employment
Local Investment Laws and Indigenisation
Media, Broadcasting & Communications
Mining, Environmental & Resources
Property Law and Real Estate
Tax

Media

Explore our news articles, specialist publications and browse through our webinars and gallery