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2016


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False valuation in the balance sheet under scrutiny by the Joint Chambers

With Order No. 676/2016 filed on 4 March 2016, the Fifth Criminal Chamber of the Supreme Court has referred the following question to the Joint Chambers:

Whether the amendment to Art. 2621 of the Civil Code by effect of Art. 9 of Law 69/2015 which, in the part regulating “False company communications” does not contain the wording “the subject of valuations”, has partially abrogated the effect on the case.

The decision of the Supreme Court stems from the need to settle the discord arising within the Fifth Criminal Chamber itself, which in a little under a month has arrived at two opposing solutions.

The first interpretation, confirmed with Judgement No. 6916/2016, and even earlier with Judgement No. 33774/2015, supports the abrogating effect caused by the elision of the wording “the subject of valuations.

The Court reaches this conclusion using literal and systematic criteria. On the one hand, the adjective “material” excludes the criminal relevance of valuations (so much so that the legislator decided to replace information with facts in the enabling law). On the other hand, the legislator has left Art. 2638 of the Civil Code unchanged (heading “Obstructing public regulatory authorities performing their functions”), which contains explicit reference to valuations, moreover “to clarify the contents of the same expression - material facts that are untrue.”

However, with Judgement No. 890/2016 the Supreme Court provided an opposing interpretation: it is not possible to exclude so-called false valuation because most of the items recorded in the balance sheet are the result of a valuation, which is performed using predetermined parameters.

Consequently, the new wording of Art. 2621 of the Civil Code cannot have a partially abrogating effect and the statement of facts that are the subject of valuations still has criminal relevance.

The Joint Chambers will have (perhaps) the last word.

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