Article 803 — Liability of Managers

1/ The Court may, in the course of bankruptcy proceedings, order that one or more de facto or de jure managers of an entity bear all or part of the debts of the entity where the manager is at fault and has contributed to the insufficiency of assets of the company, corresponding to the aggregate of the decrease of value of the assets and the increase of value of the liabilities, in particular by: a) gross negligently failing to file for bankruptcy within forty-five days after the cessation of payments; or b) grossly negligently continuing money-losing activities; c) carrying out commercial operations on their own personal behalf and disposing of company assets as though they were their own and concealing their personal affairs under the cover of the company. 2/ Where several managers have committed the management faults contributing to the insufficiency of assets, the court may hold these managers liable jointly and severally. 3/ Sums recovered under an action under Sub-Article (1) of this Article shall be used to pay off creditors of the bankrupt entity in accordance with the order of priorities of Article 786 of this Code.