Article 5 Grounds for disqualifying applicants

Grants may not be awarded to applicants who are, at the time of a grant award procedure, in one of the following situations:

1. (a)

   they are bankrupt or being wound up, are having their affairs administered by the courts, have entered into an arrangement with creditors, have suspended business activities, are the subject of proceedings concerning those matters, or are in any analogous situation arising from a similar procedure provided for in national legislation or regulations;

2. (b)

   they have been convicted of an offence concerning their professional conduct by a judgment which has the force of res judicata;

3. (c)

   they have been guilty of grave professional misconduct proven by any means which the contracting authority can justify;

4. (d)

   they have not fulfilled obligations relating to the payment of social security contributions or the payment of taxes in accordance with the legal provisions of the country in which they are established or with those of the country of the contracting authority or those of the country where the contract is to be performed;

5. (e)

   they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation or any other illegal activity detrimental to the Communities' financial interests;

6. (f)

   following another procurement procedure or grant award procedure financed by the Community budget, they have been declared to be in serious breach of contract for failure to comply with their contractual obligations;

7. (g)

   they have knowingly submitted false declarations in providing the information required.