If you breach your obligations set out by law, you may be subject to four kinds of legal consequences.
First, the public sector person will have the right to rescind an agreement or defer a performance under an agreement. In such case, the public sector person would not be deemed to be in delay with the performance of their obligations under an agreement made with the public sector partner, even if the public sector person does not meet its obligation to perform or provide assets.
Further, a financial penalty may be imposed. This penalty may be up to EUR 1,000,000 for a public sector partner and up to EUR 100,000 for a member of the executive body of the public sector partner. Such penalty cannot be lower than EUR 10,000 and every single member of the executive body of the public sector partner can he held liable.
Next, the decision to impose a penalty also amounts to an expulsion decision under the Commercial Code. As a result, the natural person who at the time of the imposition of such penalty was a member of the executive body of the public sector partner may not discharge the office of a member of an executive body or supervisory body in any company, partnership or co-operative for the time set out in the court decision or for up to three years after such decision becomes effective. Furthermore, such natural person may not act as a head of a branch or a foreign person’s business or as a procurator.
Finally, in certain cases, such failure to register may result in criminal liability. If such failure is due to wilful misconduct, it may qualify as the criminal offence of the distortion of data in financial and commercial records under Sections 259 and 260 of the Criminal Code, the criminal offence of fraud under Section 221 of the Criminal Code or the criminal offence of subsidy fraud under Section 225 of the Criminal Code.