Article 807 — Negligent Bankruptcy

Unless the Criminal Code of Ethiopia provides for more severe punishment, debtors and managers of business organizations that have been declared bankrupt and who: 1/ intentionally enter into contracts giving undue advantage to the other contracting party; 2/ with intent to delay the cessation of payments, make purchases for re-sale at lower prices or with intent to delay, used ruinous means to obtain funds; 3/ without lawful excuse, failed to declare cessation of payments to the court within forty-five days of the cessation of payments in accordance with Article 705 of this Code; 4/ willfully left the financial statements incomplete or kept books and records irregularly or kept financial statements that failed manifestly to comply with accounting reporting standards given the size of the company; shall, upon conviction, be punishable with simple imprisonment not exceeding six months and a fine amounting to ten thousand Ethiopian Birr (10,000 ETB).